We consider a single product, single period inventory problem with stochastic price-dependent demand. The ordering and pricing decisions have to be made at the beginning of the period before demand is realized. Unsatisfied demand is lost and excess inventory has to be salvaged. The standard...

This book deals with analysis of sequential decision models in investment and portfolio theory. The optimal investment strategy is derived by using results from stochastic dynamic programming and from Bayesian statistics. The analysis is largely restricted to models with only two alternatives in...

We extend the dual sourcing model based on the newsvendor framework by considering the environmental impact of transport. In our context, dual sourcing means that a company, e.g. a retailer, uses an offshore and an onshore supplier. We include environmental regulations for transport in the...