Bounds and Heuristics for Optimal Bayesian Inventory Control with Unobserved Lost Sales
Author
Abstract
Suggested Citation
DOI: 10.1287/opre.1090.0726
Download full text from publisher
References listed on IDEAS
- Li Chen & Erica L. Plambeck, 2008. "Dynamic Inventory Management with Learning About the Demand Distribution and Substitution Probability," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 236-256, May.
- William S. Lovejoy, 1990. "Myopic Policies for Some Inventory Models with Uncertain Demand Distributions," Management Science, INFORMS, vol. 36(6), pages 724-738, June.
- Katy S. Azoury, 1985. "Bayes Solution to Dynamic Inventory Models Under Unknown Demand Distribution," Management Science, INFORMS, vol. 31(9), pages 1150-1160, September.
- Steven Nahmias, 1994. "Demand estimation in lost sales inventory systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(6), pages 739-757, October.
- Gary D. Eppen & Ananth. V. Iyer, 1997. "Improved Fashion Buying with Bayesian Updates," Operations Research, INFORMS, vol. 45(6), pages 805-819, December.
- David J. Braden & Marshall Freimer, 1991. "Informational Dynamics of Censored Observations," Management Science, INFORMS, vol. 37(11), pages 1390-1404, November.
- Xiangwen Lu & Jing-Sheng Song & Kaijie Zhu, 2008. "Analysis of Perishable-Inventory Systems with Censored Demand Data," Operations Research, INFORMS, vol. 56(4), pages 1034-1038, August.
- Martin A. Lariviere & Evan L. Porteus, 1999. "Stalking Information: Bayesian Inventory Management with Unobserved Lost Sales," Management Science, INFORMS, vol. 45(3), pages 346-363, March.
- Xiaomei Ding & Martin L. Puterman & Arnab Bisi, 2002. "The Censored Newsvendor and the Optimal Acquisition of Information," Operations Research, INFORMS, vol. 50(3), pages 517-527, June.
- Giora Harpaz & Wayne Y. Lee & Robert L. Winkler, 1982. "Learning, Experimentation, and the Optimal Output Decisions of a Competitive Firm," Management Science, INFORMS, vol. 28(6), pages 589-603, June.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Prak, Dennis & Teunter, Ruud & Syntetos, Aris, 2017. "On the calculation of safety stocks when demand is forecasted," European Journal of Operational Research, Elsevier, vol. 256(2), pages 454-461.
- Tianhu Deng & Zuo-Jun Max Shen & J. George Shanthikumar, 2014. "Statistical Learning of Service-Dependent Demand in a Multiperiod Newsvendor Setting," Operations Research, INFORMS, vol. 62(5), pages 1064-1076, October.
- Sharfuddin Lisan, 2018. "Safety stock determination of uncertain demand and mutually dependent variables," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 8(3), pages 1-11, March.
- Hongzhe Zhang & Xiaohang Zhao & Xiao Fang & Bintong Chen, 2024. "Proactive Resource Request for Disaster Response: A Deep Learning-Based Optimization Model," Information Systems Research, INFORMS, vol. 35(2), pages 528-550, June.
- Adam J. Mersereau, 2015. "Demand Estimation from Censored Observations with Inventory Record Inaccuracy," Manufacturing & Service Operations Management, INFORMS, vol. 17(3), pages 335-349, July.
- Ye Shi & Layth C. Alwan & Srinivasan Raghunathan & Yugang Yu & Xiaohang Yue, 2021. "Mobile Consumer Scanning Technology: A Replacement for Interorganizational Information Systems for Demand Information Learning in Supply Chains?," Information Systems Research, INFORMS, vol. 32(4), pages 1431-1449, December.
- Omar Besbes & Alp Muharremoglu, 2013. "On Implications of Demand Censoring in the Newsvendor Problem," Management Science, INFORMS, vol. 59(6), pages 1407-1424, June.
- Prak, Dennis & Teunter, Ruud, 2019. "A general method for addressing forecasting uncertainty in inventory models," International Journal of Forecasting, Elsevier, vol. 35(1), pages 224-238.
- Sharfuddin Lisan, 2018. "Safety stock determination of uncertain demand and mutually dependent variables," International Journal of Business and Social Research, LAR Center Press, vol. 8(3), pages 1-11, March.
- Gen Sakoda & Hideki Takayasu & Misako Takayasu, 2019. "Data Science Solutions for Retail Strategy to Reduce Waste Keeping High Profit," Sustainability, MDPI, vol. 11(13), pages 1-30, June.
- Harun Avci & Kagan Gokbayrak & Emre Nadar, 2020. "Structural Results for Average‐Cost Inventory Models with Markov‐Modulated Demand and Partial Information," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 156-173, January.
- Deligiannis, Michalis & Liberopoulos, George & Pandelis, Dimitrios G., 2023. "Managing supply chain risks with dual sourcing: Bayesian learning of censored supply capacity," International Journal of Production Economics, Elsevier, vol. 265(C).
- Rossi, Roberto & Prestwich, Steven & Tarim, S. Armagan & Hnich, Brahim, 2014. "Confidence-based optimisation for the newsvendor problem under binomial, Poisson and exponential demand," European Journal of Operational Research, Elsevier, vol. 239(3), pages 674-684.
- Jiri Chod & Mihalis G. Markakis & Nikolaos Trichakis, 2021. "On the Learning Benefits of Resource Flexibility," Management Science, INFORMS, vol. 67(10), pages 6513-6528, October.
- Mou, Shandong & Robb, David J. & DeHoratius, Nicole, 2018. "Retail store operations: Literature review and research directions," European Journal of Operational Research, Elsevier, vol. 265(2), pages 399-422.
- Mila Nambiar & David Simchi‐Levi & He Wang, 2021. "Dynamic Inventory Allocation with Demand Learning for Seasonal Goods," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 750-765, March.
- Aditya Jain & Nils Rudi & Tong Wang, 2015. "Demand Estimation and Ordering Under Censoring: Stock-Out Timing Is (Almost) All You Need," Operations Research, INFORMS, vol. 63(1), pages 134-150, February.
- Li Chen & Adam J.Mersereau & Zhe (Frank) Wang, 2017. "Optimal Merchandise Testing with Limited Inventory," Operations Research, INFORMS, vol. 65(4), pages 968-991, August.
- Arnab Bisi & Maqbool Dada & Surya Tokdar, 2011. "A Censored-Data Multiperiod Inventory Problem with Newsvendor Demand Distributions," Manufacturing & Service Operations Management, INFORMS, vol. 13(4), pages 525-533, October.
- Bharadwaj Kadiyala & Özalp Özer & Alain Bensoussan, 2020. "A Mechanism Design Approach to Vendor Managed Inventory," Management Science, INFORMS, vol. 66(6), pages 2628-2652, June.
- Rong Li & Jing‐Sheng Jeannette Song & Shuxiao Sun & Xiaona Zheng, 2022. "Fight inventory shrinkage: Simultaneous learning of inventory level and shrinkage rate," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2477-2491, June.
- Alain Bensoussan & Pengfei Guo, 2015. "Technical Note—Managing Nonperishable Inventories with Learning About Demand Arrival Rate Through Stockout Times," Operations Research, INFORMS, vol. 63(3), pages 602-609, June.
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.- Woonghee Tim Huh & Paat Rusmevichientong, 2009. "A Nonparametric Asymptotic Analysis of Inventory Planning with Censored Demand," Mathematics of Operations Research, INFORMS, vol. 34(1), pages 103-123, February.
- Mila Nambiar & David Simchi‐Levi & He Wang, 2021. "Dynamic Inventory Allocation with Demand Learning for Seasonal Goods," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 750-765, March.
- Arnab Bisi & Maqbool Dada & Surya Tokdar, 2011. "A Censored-Data Multiperiod Inventory Problem with Newsvendor Demand Distributions," Manufacturing & Service Operations Management, INFORMS, vol. 13(4), pages 525-533, October.
- Li, Tianyun & Fang, Weiguo & Baykal-Gürsoy, Melike, 2021. "Two-stage inventory management with financing under demand updates," International Journal of Production Economics, Elsevier, vol. 232(C).
- Arnab Bisi & Maqbool Dada, 2007. "Dynamic learning, pricing, and ordering by a censored newsvendor," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(4), pages 448-461, June.
- Li Chen & Erica L. Plambeck, 2008. "Dynamic Inventory Management with Learning About the Demand Distribution and Substitution Probability," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 236-256, May.
- Xiangwen Lu & Jing-Sheng Song & Kaijie Zhu, 2008. "Analysis of Perishable-Inventory Systems with Censored Demand Data," Operations Research, INFORMS, vol. 56(4), pages 1034-1038, August.
- Deligiannis, Michalis & Liberopoulos, George & Pandelis, Dimitrios G., 2023. "Managing supply chain risks with dual sourcing: Bayesian learning of censored supply capacity," International Journal of Production Economics, Elsevier, vol. 265(C).
- Zhang, Jian & Zhang, Juliang & Hua, Guowei, 2016. "Multi-period inventory games with information update," International Journal of Production Economics, Elsevier, vol. 174(C), pages 119-127.
- Xiaomei Ding & Martin L. Puterman & Arnab Bisi, 2002. "The Censored Newsvendor and the Optimal Acquisition of Information," Operations Research, INFORMS, vol. 50(3), pages 517-527, June.
- Adam J. Mersereau, 2015. "Demand Estimation from Censored Observations with Inventory Record Inaccuracy," Manufacturing & Service Operations Management, INFORMS, vol. 17(3), pages 335-349, July.
- Katy S. Azoury & Julia Miyaoka, 2009. "Optimal Policies and Approximations for a Bayesian Linear Regression Inventory Model," Management Science, INFORMS, vol. 55(5), pages 813-826, May.
- Gen Sakoda & Hideki Takayasu & Misako Takayasu, 2019. "Data Science Solutions for Retail Strategy to Reduce Waste Keeping High Profit," Sustainability, MDPI, vol. 11(13), pages 1-30, June.
- Alain Bensoussan & Pengfei Guo, 2015. "Technical Note—Managing Nonperishable Inventories with Learning About Demand Arrival Rate Through Stockout Times," Operations Research, INFORMS, vol. 63(3), pages 602-609, June.
- Nicholas C. Petruzzi & Maqbool Dada, 2002. "Dynamic pricing and inventory control with learning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 49(3), pages 303-325, April.
- Aditya Jain & Nils Rudi & Tong Wang, 2015. "Demand Estimation and Ordering Under Censoring: Stock-Out Timing Is (Almost) All You Need," Operations Research, INFORMS, vol. 63(1), pages 134-150, February.
- Woonghee Tim Huh & Retsef Levi & Paat Rusmevichientong & James B. Orlin, 2011. "Adaptive Data-Driven Inventory Control with Censored Demand Based on Kaplan-Meier Estimator," Operations Research, INFORMS, vol. 59(4), pages 929-941, August.
- Li Chen & Adam J.Mersereau & Zhe (Frank) Wang, 2017. "Optimal Merchandise Testing with Limited Inventory," Operations Research, INFORMS, vol. 65(4), pages 968-991, August.
- Gel, Esma S. & Salman, F. Sibel, 2022. "Dynamic ordering decisions with approximate learning of supply yield uncertainty," International Journal of Production Economics, Elsevier, vol. 243(C).
- Rong Li & Jing‐Sheng Jeannette Song & Shuxiao Sun & Xiaona Zheng, 2022. "Fight inventory shrinkage: Simultaneous learning of inventory level and shrinkage rate," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2477-2491, June.
More about this item
Keywords
inventory/production; heuristics; unknown demand distribution; Bayesian updating; unobserved lost sales; dynamic programming/optimal control; bounds;All these keywords.
Statistics
Access and download statisticsCorrections
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:inm:oropre:v:58:y:2010:i:2:p:396-413. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.