Newsvendor problems:An integrated method for estimation and optimisation

Letchford, Adam and Liu, Congzheng and Svetunkov, Ivan (2021) Newsvendor problems:An integrated method for estimation and optimisation. European Journal of Operational Research. ISSN 0377-2217

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Abstract

Newsvendor problems (NVP) form a classical and important family of stochastic optimisation problems. In this paper, we consider a data-driven solution method proposed recently by Ban and Rudin. We first examine it from a statistical viewpoint, and establish a connection with quantile regression. We then extend the approach to nonlinear NVP. Finally, we give extensive experimental results, on both simulated and real data. The results indicate that the approach performs as well as conventional ones when applied to linear NVP, but performs better when applied to nonlinear NVP. There is also evidence that the approach is more robust with respect to model misspecification.

Item Type:
Journal Article
Journal or Publication Title:
European Journal of Operational Research
Additional Information:
This is the author’s version of a work that was accepted for publication in European Journal of Operatoinal Research. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Jourrnal of Operational Research, ?, ?, 2021 DOI: 10.1016/j.ejor.2021.08.013
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1800/1802
Subjects:
ID Code:
158313
Deposited By:
Deposited On:
13 Aug 2021 08:50
Refereed?:
Yes
Published?:
Published
Last Modified:
22 Oct 2021 05:23