Motivated by data from a large European retail chain, we tackle the newsvendor problem with censored demand observations by a distribution-free model based on a data-driven approach. The model estimates the optimal inventory levels as a linear function of exogenous variables, e.g., price or...

We consider the stochastic economic lot scheduling problem (SELSP) with lost sales and random demand where switching between products is subject to sequence-dependent setup times. We propose a solution based on simulation optimization using an iterative two-step procedure which combines global...

This paper explores the rationale for planning time-phased safety stocks. We assert that a single safety stock vector for the entire planning horizon (typically based on stationary demand forecast errors and stationary replenishment lead times) may be insufficient for hedging against...