Bensoussan, Alain; Feng, Qi; Sethi, Suresh P. - In: Manufacturing & Service Operations Management 13 (2011) 1, pp. 73-88
We deal with the problem of a profit-maximizing vendor selling a perishable product. At the beginning of a planning cycle, the vendor determines a minimum committed order per period. During the cycle, he may also place a supplemental order in each period based on the observed demand signal in...