We consider an inventory control problem with multiple products and stockout substitution. The firm knows neither the primary demand distribution for each product nor the customers' substitution probabilities between products a priori, and needs to learn such information from sales data on the...

In this paper, we consider a stochastic inventory system of two products where a fi xed proportion of the unsatisfied ed demand for one product purchases the other product as a substitute. We formulate the optimal inventory control problem as a dynamic program; and by developing two key...

This paper considers a stochastic inventory management problem where a capital-constrained firm can obtain additional working capital through an inventory-based financing facility by pledging its inventory to obtain loans from a lender. We show that it is optimal to deploy a state-dependent...