Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
482287 | European Journal of Operational Research | 2010 | 16 Pages |
Abstract
This paper considers a multi-period news-vendor problem with partially observed supply-capacity information which evolves as a Markovian Process. The supply capacity is fully observed by the buyer when the capacity is smaller than the buyer’s ordering quantity. Otherwise, the buyer knows that the current-period supply capacity is greater than its ordering quantity. Based on these two observations, the buyer updates the future supply-capacity forecasting accordingly. With a dynamic programming formulation, we prove the existence of an optimal ordering policy. We also prove that the optimal order quantity is greater than the myopic order quantity.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Haifeng Wang, Bocheng Chen, Houmin Yan,