value of information

The Value of Information in the Newsvendor Problem

  • Gokhan Metan
  • Aurelie Thiele
    • Categories Applications - OR and Management Sciences, Production and Logistics Tags , ,

    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

    The Value of Information in Inventory Management

  • Gokhan Metan
  • Aurelie Thiele
    • Categories Production and Logistics, Robust Optimization Tags , ,

    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