Flexile ordering policy of two-stage newsvendor model with demand updating under demand uncertainty

@article{Rui2016FlexileOP,
  title={Flexile ordering policy of two-stage newsvendor model with demand updating under demand uncertainty},
  author={Wang Rui and S. H. Shiji and Zhang Yuli and Wu Cheng},
  journal={2016 35th Chinese Control Conference (CCC)},
  year={2016},
  pages={2697-2702}
}
This paper studies the retailer's flexible ordering policy for a two-stage newsvendor model with demand information updating. Demand uncertainty and the limited order quantity are considered at the same time. The optimal order quantities of the first and second-stage are obtained by analyzing the characteristics of the two stage newsvendor model, and an optimal order policy is proposed in the second-stage. Furthermore, we discuss the optimal order quantities of the first and second-stage in the… CONTINUE READING