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 …

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 …

in each period based on the observed demand signal in that period. Moreover, the vendor is committed to a specific … with the possibility of supplementing it based on a demand signal observed at the second stage. The problem is to maximize … his expected profit subject to a constraint on his overall service performance across all possible values of the demand …

true for customer demand. As a result, stationary demand distributions are crude approximations of true customer behavior … comprehensive treatment of inventory models with Markov-modulated demand. The distribution of demand in these models depends on the …. Examples are products with cyclical and seasonal demands, products with distinct life-cycles or products whose demand …