IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v275y2019i2d10.1007_s10479-018-3016-7.html
   My bibliography  Save this article

Robust newsvendor problems: effect of discrete demands

Author

Listed:
  • Anh Ninh

    (College of William and Mary)

  • Honggang Hu

    (University of Florida)

  • David Allen

    (College of William and Mary)

Abstract

Distribution-free newsvendor models often assume continuous demand distributions to facilitate analysis and computation. However, in practice, discrete demand is a natural phenomenon. So far, there exists no analytical and computational results in the literature under this setting. Thus, the goal of this paper is to investigate the newsvendor problems with partial information when the demand is discrete and solve them using the so-called discrete moment problems. Numerical results are presented to illustrate the value of discrete information.

Suggested Citation

  • Anh Ninh & Honggang Hu & David Allen, 2019. "Robust newsvendor problems: effect of discrete demands," Annals of Operations Research, Springer, vol. 275(2), pages 607-621, April.
    • Handle: RePEc:spr:annopr:v:275:y:2019:i:2:d:10.1007_s10479-018-3016-7
    DOI: 10.1007/s10479-018-3016-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-018-3016-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-018-3016-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andersson, Jonas & Jörnsten, Kurt & Nonås, Sigrid Lise & Sandal, Leif & Ubøe, Jan, 2013. "A maximum entropy approach to the newsvendor problem with partial information," European Journal of Operational Research, Elsevier, vol. 228(1), pages 190-200.
    2. Karthik Natarajan & Melvyn Sim & Joline Uichanco, 2018. "Asymmetry and Ambiguity in Newsvendor Models," Management Science, INFORMS, vol. 64(7), pages 3146-3167, July.
    3. András Prékopa & Anh Ninh & Gabriela Alexe, 2016. "On the relationship between the discrete and continuous bounding moment problems and their numerical solutions," Annals of Operations Research, Springer, vol. 238(1), pages 521-575, March.
    4. Georgia Perakis & Guillaume Roels, 2008. "Regret in the Newsvendor Model with Partial Information," Operations Research, INFORMS, vol. 56(1), pages 188-203, February.
    5. András Prékopa & Anh Ninh & Gabriela Alexe, 2016. "On the relationship between the discrete and continuous bounding moment problems and their numerical solutions," Annals of Operations Research, Springer, vol. 238(1), pages 521-575, March.
    6. C. E. Lemke, 1954. "The dual method of solving the linear programming problem," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 1(1), pages 36-47, March.
    7. Cindy Courtois & Michel Denuit, 2009. "Moment Bounds on Discrete Expected Stop-Loss Transforms, with Applications," Methodology and Computing in Applied Probability, Springer, vol. 11(3), pages 307-338, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anh Ninh, 2021. "Robust newsvendor problems with compound Poisson demands," Annals of Operations Research, Springer, vol. 302(1), pages 327-338, July.
    2. Andrew Butters, R., 2019. "On demand uncertainty in the newsvendor model," Economics Letters, Elsevier, vol. 185(C).
    3. Rung-Hung Su & Dong-Yuh Yang & He-Jhen Lin & Yu-Cheng Yang, 2023. "Estimating conservative profitability of a newsboy-type product with exponentially distributed demand based on multiple samples," Annals of Operations Research, Springer, vol. 322(2), pages 967-989, March.
    4. Talal Alharbi & Anh Ninh & Ersoy Subasi & Munevver Mine Subasi, 2022. "The value of shape constraints in discrete moment problems: a review and extension," Annals of Operations Research, Springer, vol. 318(1), pages 1-31, November.
    5. Anh Ninh & Zuo‐Jun Max Shen & Martin A. Lariviere, 2020. "Concavity and Unimodality of Expected Revenue Under Discrete Willingness to Pay Distributions," Production and Operations Management, Production and Operations Management Society, vol. 29(3), pages 788-796, March.
    6. Qingguo Bai & Jianteng Xu & Yuzhong Zhang, 2022. "The distributionally robust optimization model for a remanufacturing system under cap-and-trade policy: a newsvendor approach," Annals of Operations Research, Springer, vol. 309(2), pages 731-760, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anh Ninh, 2021. "Robust newsvendor problems with compound Poisson demands," Annals of Operations Research, Springer, vol. 302(1), pages 327-338, July.
    2. András Prékopa & Anh Ninh & Gabriela Alexe, 2016. "On the relationship between the discrete and continuous bounding moment problems and their numerical solutions," Annals of Operations Research, Springer, vol. 238(1), pages 521-575, March.
    3. Talal Alharbi & Anh Ninh & Ersoy Subasi & Munevver Mine Subasi, 2022. "The value of shape constraints in discrete moment problems: a review and extension," Annals of Operations Research, Springer, vol. 318(1), pages 1-31, November.
    4. Bai, Qingguo & Xu, Jianteng & Gong, Yeming & Chauhan, Satyaveer S., 2022. "Robust decisions for regulated sustainable manufacturing with partial demand information: Mandatory emission capacity versus emission tax," European Journal of Operational Research, Elsevier, vol. 298(3), pages 874-893.
    5. András Prékopa & Anh Ninh & Gabriela Alexe, 2016. "On the relationship between the discrete and continuous bounding moment problems and their numerical solutions," Annals of Operations Research, Springer, vol. 238(1), pages 521-575, March.
    6. Qiu, Ruozhen & Sun, Minghe & Lim, Yun Fong, 2017. "Optimizing (s, S) policies for multi-period inventory models with demand distribution uncertainty: Robust dynamic programing approaches," European Journal of Operational Research, Elsevier, vol. 261(3), pages 880-892.
    7. Anh Ninh & Benjamin Melamed & Yao Zhao, 2020. "Analysis and optimization of recruitment stocking problems," Annals of Operations Research, Springer, vol. 295(2), pages 747-767, December.
    8. Guanghua Han & Xujin Pu & Bo Fan, 2017. "Sustainable Governance of Organic Food Production When Market Forecast Is Imprecise," Sustainability, MDPI, vol. 9(6), pages 1-20, June.
    9. van Eekelen, Wouter, 2023. "Distributionally robust views on queues and related stochastic models," Other publications TiSEM 9b99fc05-9d68-48eb-ae8c-9, Tilburg University, School of Economics and Management.
    10. Fleischhacker, Adam J. & Fok, Pak-Wing, 2015. "On the relationship between entropy, demand uncertainty, and expected loss," European Journal of Operational Research, Elsevier, vol. 245(2), pages 623-628.
    11. Soroush Saghafian & Brian Tomlin, 2016. "The Newsvendor under Demand Ambiguity: Combining Data with Moment and Tail Information," Operations Research, INFORMS, vol. 64(1), pages 167-185, February.
    12. Rahimian, Hamed & Bayraksan, Güzin & Homem-de-Mello, Tito, 2019. "Controlling risk and demand ambiguity in newsvendor models," European Journal of Operational Research, Elsevier, vol. 279(3), pages 854-868.
    13. Wouter van Eekelen & Dick den Hertog & Johan S.H. van Leeuwaarden, 2022. "MAD Dispersion Measure Makes Extremal Queue Analysis Simple," INFORMS Journal on Computing, INFORMS, vol. 34(3), pages 1681-1692, May.
    14. Bajgiran, Amirsaman H. & Mardikoraem, Mahsa & Soofi, Ehsan S., 2021. "Maximum entropy distributions with quantile information," European Journal of Operational Research, Elsevier, vol. 290(1), pages 196-209.
    15. M. A. Goberna & M. A. López, 2018. "Recent contributions to linear semi-infinite optimization: an update," Annals of Operations Research, Springer, vol. 271(1), pages 237-278, December.
    16. Guo, Min & Chen, Yu-wang & Wang, Hongwei & Yang, Jian-Bo & Zhang, Keyong, 2019. "The single-period (newsvendor) problem under interval grade uncertainties," European Journal of Operational Research, Elsevier, vol. 273(1), pages 198-216.
    17. Rongchuan He & Ye Lu, 2021. "A Robust Price‐Setting Newsvendor Problem," Production and Operations Management, Production and Operations Management Society, vol. 30(1), pages 276-292, January.
    18. Mariya Naumova & András Prékopa, 2021. "Bounding the values of financial derivatives by the use of the moment problem," Annals of Operations Research, Springer, vol. 305(1), pages 211-225, October.
    19. Andrew F. Siegel & Michael R. Wagner, 2021. "Profit Estimation Error in the Newsvendor Model Under a Parametric Demand Distribution," Management Science, INFORMS, vol. 67(8), pages 4863-4879, August.
    20. Roos, Ernst & Brekelmans, Ruud & van Eekelen, Wouter & den Hertog, Dick & van Leeuwaarden, Johan S.H., 2022. "Tight tail probability bounds for distribution-free decision making," European Journal of Operational Research, Elsevier, vol. 299(3), pages 931-944.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:275:y:2019:i:2:d:10.1007_s10479-018-3016-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.