New results on the newsvendor model and the multi-period inventory model with backordering
Operations Research Letters, vol.
July (3rd Quarter/Summer)
We analyze the newsvendor model and the multi-period inventory model,
and provide some new results. For the newsvendor model, the best case
newsvendor cost over all demand distributions with a given demand mean
and variance is zero. In addition, under symmetric demand distributions, the
newsvendor's costs remain the same when the holding and shortage costs are
switched. For the multi-period inventory model with stochastic lead times,
a dilation ordering of lead times implies an ordering of optimal costs.