Asymmetry and Ambiguity in Newsvendor Models

  title={Asymmetry and Ambiguity in Newsvendor Models},
  author={Karthik Natarajan and Melvyn Sim and Joline Uichanco},
  journal={Manag. Sci.},
A basic assumption of the classical newsvendor model is that the probability distribution of the random demand is known. But in most realistic settings, only partial distribution information is available or reliably estimated. The distributionally robust newsvendor model is often used in this case where the worst-case expected profit is maximized over the set of distributions satisfying the known information, which is usually the mean and covariance of demands. However, covariance does not… 
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