Computers and Industrial Engineering
Achieving a Long-Term Service Target with Periodic Demand Signals: A Newsvendor Framework
Manufacturing & Service Operations Management
Tax-Effective Supply Chain Decisions Under China's Export-Oriented Tax Policies
Manufacturing & Service Operations Management
Coordinating a two-supplier and one-retailer supply chain with forecast updating
Automatica (Journal of IFAC)
Unreliable newsboy problem with a forecast update
Operations Research Letters
A Multiordering Newsvendor Model with Dynamic Forecast Evolution
Manufacturing & Service Operations Management
Joint quantity flexibility for multiple products in a decentralized supply chain
Computers and Industrial Engineering
Advance Selling in a Supply Chain Under Uncertain Supply and Demand
Manufacturing & Service Operations Management
Optimal apparel supplier selection with forecast updates under carbon emission taxation scheme
Computers and Operations Research
Will a supplier benefit from sharing good information with a retailer?
Decision Support Systems
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We determine the optimal ordering policy for a retailer who has two instants to order a seasonal product from a manufacturer prior to a single selling season. While the demand is uncertain, the retailer can improve the forecast by utilizing the market signals observed between the first and second instants. However, because of the nature of the manufacturing environment, the unit cost at the second instant is uncertain and could be higher (or lower) than the unit cost at the first instant. To determine the profit-maximizing ordering strategies at both instants, the retailer has to evaluate the trade-off between a more accurate forecast and a potentially higher unit cost at the second instant. We present a nested newsvendor model for determining the optimal order quantity at each instant and characterize the conditions under which it is optimal for the retailer to delay its order until the second instant.