We consider a yield-management approach to determine whether a restaurant should accept or reject a pending reservation request. This approach was examined by Bossert (2009), where the decision for each request is evaluated by an approximate dynamic program (ADP) that bases its decision on a...

In this paper, we propose a new method to compute lower bounds on the optimal objective value of a stochastic program and show how this method can be used to construct separable approximations to the recourse functions. We show that our method yields tighter lower bounds than Jensen's lower...