\(\) We consider a joint UAV and truck routing problem in which the operation of the UAV is subject to uncertain disruptions. The planner initially does not know in which locations a disruption will occur but can refine his/her knowledge by spending additional resources to probe locations for additional information, removing the uncertainty for the … Read more
In this work, we investigate the value of information when the decision-maker knows whether a perishable product will be in high, moderate or low demand before placing his order. We derive optimality conditions for the probability of the baseline scenario under symmetric distributions and analyze the impact of the cost parameters on simulation experiments. Our … Read more
Inventory management traditionally assumes the precise knowledge of the underlying demand distribution and a risk-neutral manager. New product introduction does not fit this framework because (i) not enough information is available to compute probabilities and (ii) managers are generally risk-averse. In this work, we analyze the value of information for two-stage inventory management in a … Read more