Risk analysts frequently encounter functional relationships concerning costs and revenue which can be expressed as standard algebraic forms. The forms are quadratic, product, or mixed functions of variables which are normally distributed and not necessarily statistically independent. (The ratio...

The analysis of the full stochastic model in which both the demand per unit time and the lead time are stochastic is complex. Analysis of the reduced stochastic inventory models in which only one of the parameters (either the demand per unit time or the lead time) is stochastic and the other is...

Motivated by the proliferation of online selling, we study a seller's decision problem: The seller has one unit of product and needs to choose a selling format among three different ones (posted price, auction, and buy-price auction), as well as to decide upon the corresponding decision...

In a study on stochastic inventory systems, Chopra et al. (Decision Sciences 35(1) (2004) 1–24) argue that decreasing lead time is the right lever if they want to cut inventories, not reducing lead time variability. According to Chopra et al., reducing the mean lead time, μ, is more important...