This paper analyses a single-period decision of a retailer facing uncertain and price dependent demand. The typical modeling of the problem in a newsvendor framework assumes the unfulfilled demand to be lost once and for all. However, in reality, there may be an opportunity to backlog the lost...

Transaction exposure normally arises when there exists a time lag between the time the financial obligation has been incurred and the time it is due to be settled, because the purchase price to the buyer/retailer may, on settlement day, differs from that when it was incurred, if the debt is...