A Bayesian Approach to the Two-Period Style-Goods Inventory Problem with Single Replenishment and Heterogeneous Poisson Demands

Bradford, John; Sugrue, Paul K.

doi:10.2307/2583816

Cited by 7 publications

(7 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…There are mainly three research lines along with this research stream. The first is to explore inventory models under stochastic demands with the Bayesian approach (see, e.g., Bradford and Sugrue 1990, Lovejoy 1990, Spedding and Chan 2000. Lovejoy (1990) developed two myopic policies for inventory management under uncertain demand distributions by applying the exponential smooth and Bayesian models.…”

Section: Literature Reviewmentioning

confidence: 99%

A State‐Feedback Approach to Inventory Control: Analytical and Empirical Studies

Zhao

et al. 2016

Production and Operations Management

View full text Add to dashboard Cite

B y applying the state feedback principle of control theory, this study develops a state-feedback model that is capable of self-compensation and self-adjustment for inventory control. To be specific, under the state-feedback model, deviation between material order quantity and actual shipment can be dynamically adjusted in response to the actual shipment with the pole-placement state-feedback mechanism. As a result of this merit, the state-feedback model can ensure a more accurate order in each step of the inventory control process and thereby attain a more effective inventory control, particularly, a significant reduction of the inventory cost. In addition to analytical research, empirical studies are also conducted for the analytical model by using data collected from the industry. The empirical results show that the state-feedback model can attain a significant improvement for inventory control and the effectiveness and applicability of the state-feedback model can be well empirically tested.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

A State‐Feedback Approach to Inventory Control: Analytical and Empirical Studies

Zhao

et al. 2016

Production and Operations Management

View full text Add to dashboard Cite

show abstract

“…It is important to note that Miller (1986) and Lovejoy (1990) examined demand uncertainty in the context of forecast updating. Bradford and Sugrue (1990) and Eppen and Iyer (1992) introduced the decision to produce several products in this context of demand uncertainty. In a very early work Hausman and Peterson (1972) considered the decision-theoretic problem of (demand) forecast updating in the presence of capacity constraints.…”

Section: Market Experimentationmentioning

confidence: 99%

Decision Making in Ignorance and Consequent Market Outcomes: Equilibrium Analysis

Gangopadhyay¹

2011

MAS

View full text Add to dashboard Cite

In recent years a series of important work has stressed the importance of iterative planning with market experimentation and learning in markets characterised by uncertain and dynamic environments. The possibility of herding, anti-herding and erroneous social learning, collectively called informational cascades, can add further instability to unstable markets in which actors suffer from significant knowledge gaps, or from plain ignorance. The main innovation of this paper is to make rational decision-maker aware of the adverse consequences of informational, or information, cascades in markets characterised by ignorance due to their uncertain and dynamic environments. This paper offers for the first time, to the best of our understanding, a simple modelling of a market with uncertain and dynamic environments and explains the existence of an equilibrium that is immune from the vagaries of whims, fads and informational cascades. The implication cannot be overstressed: issues of stock-out and markdown losses, market crashes and failures can be pushed to the background if the smart decision-makers can home in on this cascade-free equilibrium. In future work, it is imperative to design a mechanism that can act as perpetual succour to the cascade-free, or what we call "blessed", equilibrium in contradistinction to the famed "cursed equilibrium" .

show abstract

“…Bradford and Sugrue (1990) study a two-period model in which a group of items have heterogeneous Poisson demands; for each item the parameter of the Poisson distribution is distributed according to a gamma distribution, resulting in a negative binomial distribution for the aggregate demand. An improved solution procedure for the problem discussed in Bradford and Sugrue (1990) is given by Lau and Lau (1999). Fisher and Raman (1996) look into the production commitment decisions of a manufacturer.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal ordering and pricing in a quick response system

Serel

2009

International Journal of Production Economics

View full text Add to dashboard Cite

a b s t r a c tQuick response systems enable retailers to estimate customer demand more accurately, and improve stocking decisions for perishable products with uncertain demand. Retailers place separate orders for a product at two different times before the selling season. Following the initial order, additional market information is obtained, and the second-order amount is decided based on an improved demand forecast. In some cases, purchase cost associated with the second order is uncertain, and demand for the product during the season depends on the selling price. We present a solution procedure for finding the optimal order quantity and selling price in this setting. We also study the case where any desired portion of the initial order can be cancelled after updating the demand forecast. In the numerical study, the optimal price is observed to be relatively insensitive to changes in demand variability.

show abstract

A Bayesian Approach to the Two-Period Style-Goods Inventory Problem with Single Replenishment and Heterogeneous Poisson Demands

Cited by 7 publications

References 0 publications

A State‐Feedback Approach to Inventory Control: Analytical and Empirical Studies

A State‐Feedback Approach to Inventory Control: Analytical and Empirical Studies

Decision Making in Ignorance and Consequent Market Outcomes: Equilibrium Analysis

Optimal ordering and pricing in a quick response system

Contact Info

Product

Resources

About