We propose a new newsvendor model with the focus theory of choice. Instead of calculating the expected utility, the model conceives that a retailer evaluates each order quantity by examining the most salient demand for him/her. The proposed model is a bilevel optimization problem with maximin...

Effective transshipment of inventory is a way to take advantage of aggregation effects in decentralized inventory systems. Previous research in the inventory sharing area has been mostly analytical in nature, focused on optimal stocking and sharing decisions and the coordinating role of transfer...