Inventory management and pricing decisions based on quantitative models both in industrial practice and academic works often rely on minimizing expected cost, which refers to the concept of risk-neutrality of the decision maker. Although many useful insights in operational problems can be...

We consider the price-setting newsvendor model where the ordering and pricing decisions have to be made at the beginning of a selling period before demand is realized. Unsatisfied demand is lost and excess inventory has to be salvaged. The standard approach is to assume stochastic demand to be...

Inventory management decisions based on quantitative models both in industrial practice and academic works often rely on minimizing expected cost or maximizing expected revenues or profits, which refers to the concept of risk-neutrality of the decision maker. Although many useful insights in...