Use of uncertain additional information in newsvendor models
The newsvendor problem is a popular inventory management problem in supply chain management and logistics. Solutions to the newsvendor problem determine optimal inventory levels. This model is typically fully determined by a purchase and sale prices and a distribution of random market demand. Fr...
| Published in: | GOL'20 : proceedings : 2020 5th International conference on logistics operations management (GOL) October, 28-30, 2020, virtual P. 1-6 |
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| Format: | Book Chapter |
| Language: | Russian |
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| Online Access: | http://vital.lib.tsu.ru/vital/access/manager/Repository/koha:000564375 Перейти в каталог НБ ТГУ |
| Summary: | The newsvendor problem is a popular inventory management problem in supply chain management and logistics. Solutions to the newsvendor problem determine optimal inventory levels. This model is typically fully determined by a purchase and sale prices and a distribution of random market demand. From a statistical point of view, this problem is often considered as a quantile estimation of a critical fractile which maximizes anticipated profit. The distribution of demand is a random variable and is often estimated on historic data. In an ideal situation, when the probability distribution of demand is known, one can determine the quantile of a critical fractile minimizing a particular loss function. When a parametric family is known, maximum likelihood estimation is asymptotically efficient under certain regularity assumptions and the maximum likelihood estimators (MLEs) are used for estimating quantiles. Then, the Cramer-Rao lower bound determines the lowest possible asymptotic variance for the MLEs. Can one find a quantile estimator with a smaller variance then the Cramer-Rao lower bound? If a relevant additional information is available then the answer is yes. This manuscript considers minimum variance and mean squared error estimation which incorporate additional information for estimating optimal inventory levels. |
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| Bibliography: | Библиогр.: 3 назв. |
| ISBN: | 9781728164250 |