In this paper, we develop an extension of the newsvendor model with initial inventory. In addition to the usual quantity ordered at the beginning of the horizon and the usual quantity salvaged at the end of the horizon, we introduce a new decision variable: a salvage opportunity at the beginning...

We develop a stochastic two-period production/inventory planning model, which combines the use of information updating process with the flexibility of different delivery lead-times ordering strategy. Several decision variables are used: two orders are placed at the beginning of the first and...