Secomandi, Nicola - In: Management Science 56 (2010) 3, pp. 449-467
optimal inventory-trading policy of a risk-neutral merchant is characterized by two stage and spot-price dependent basestock … targets. Under some assumptions, these targets are monotone in the spot price and partition the available inventory and spot … prices in general depends on the merchant's inventory availability. This is a consequence of the interplay between the …