, (ii) aggregate demand and (iii) oil-specific demand shock, by proposing the Information Criterion model averaging as a … demand shock, and more persistent following an oil specific demand shock …

We study a two-stage purchase contract with a demand forecast update. The purchase contract provides the buyer an … opportunity to adjust an initial commitment based on an updated demand forecast obtained at a later stage. An adjustment, if any … of demand distributions. We also discuss how these results can be applied to gain managerial insights that help in making …

This article analyzes a discrete time lost sales inventory system with partially observed demand and unobserved … shrinkages which happen both before and after the demand realization. When the demand exceeds the remaining inventory, the unmet … demand is lost and unobserved. This problem in general has a nonlinear state evolution, and we use unmoralized probability to …

We consider the reorder point, order quantity inventory model where the demand, D, and the lead time, L, are …, holding cost per unit per unit time, shortage cost per unit, the standard deviation of demand, and the standard deviation of …

) price uncertainty and (ii) inventory risk into account. This treatment captures demand response in the retail market with …, where consumers only bear the price risk – thus mimicking the demand response in the electricity market. We find that in …Despite the efforts of restructuring power markets over the last decades, the lack of demand response in the retail …

firm over a finite horizon. We develop a novel demand model that transfers the discrete bundling decision and the … item complementarity, cost structure, inventory status, demand uncertainty, and supply responsiveness …

Markov-modulated processes have been used in stochastic inventory models with setup costs for modeling demand under the … have been carried out in the literature only under the assumption that unsatisfied demand is fully backlogged. The lost … Markovian demand model with backlogging to analyze the lost sales case; in particular, we establish the optimality of an (s, S …

This paper considers the case of partially observed demand in the context of a multi-period inventory problem with lost … sales. Demand in a period is observed if it is less than the inventory level in that period and the leftover inventory is …. These observations are used to update the demand distributions over time. The state of the resulting dynamic program …