Fully Polynomial Time (Sigma,Pi)-Approximation Schemes for Continuous Nonlinear Newsvendor and Continuous Stochastic Dynamic Programs

We study the continuous newsvendor problem (i.e. a newsvendor problem concerning goods of a non-discrete nature, such as fresh fruit juice) and a class of stochastic dynamic programs with several application areas, such as inventory control of a continuous good, economics, and supply chain management. The class is characterized by continuous state and action spaces, … Read more

Robust Inventory Management Using Tractable Replenishment Policies

We propose tractable replenishment policies for a multi-period, single product inventory control problem under ambiguous demands, that is, only limited information of the demand distributions such as mean, support and deviation measures are available. We obtain the parameters of the tractable replenishment policies by solving a deterministic optimization problem in the form of second order … Read more