The classic newsvendor model was developed under the assumption that period-to-period demand is independent over time. In real-life applications, the notion of independent demand is often challenged. In this paper, we examine the newsvendor model in the presence of correlated demands....

Econometric aspects of recent research on inventory models are surveyed. The discussion emphasizes issues relevant to instrumental variables estimation of a first order condition of the Holt et al. (1960) linear quadratic inventory model, including choice of instruments, covariance matrix...

The object of research is the processes of material and technical support of projects in the field of supply chain management. One of the most challenging areas faced by logistics and project managers is determining the appropriate level of supply chain inventory management when implementing...

Game theoretic models require strong informational assumptions that may not hold in operations applications. In such settings, how do uninformed players behave? We take a first step towards addressing this question by conducting a controlled human subject experiment. We focus on a simple...

In this paper we present the results of a Newsvendor experiment. We study the differences between the ordering decisions of female and male subjects under low profit margin and high profit margin treatments. We show that female subjects’ ordering decisions are lower under both profit margins,...

We consider a discrete time network inventory management problem on a hub-and-spoke network. Each period begins with an initial inventory at each of the nodes in the network, after which the customers (demand) materialize at the nodes. Each customer picks up a unit at the origin node and drops...

We settle an open conjecture regarding the newsvendor game. We prove that its core is always nonempty for all possible joint distributions of the random demands. We give sufficient conditions under which the core is a singleton, or at a core allocation every newsvendor shares a nonnegative cost