| Article ID: | iaor2006711 |
| Country: | Netherlands |
| Volume: | 33 |
| Issue: | 4 |
| Start Page Number: | 341 |
| End Page Number: | 348 |
| Publication Date: | Jul 2005 |
| Journal: | Operations Research Letters |
| Authors: | Shanthikumar J. George, Liyanage Liwan H. |
| Keywords: | statistics: decision |
Consider the newsvendor inventory control problem with an ambiguous demand. The traditional approach of separating the parameter estimation and the maximization of the expected profit leads to a suboptimal inventory policy. Operational statistics, introduced in this paper, provides a superior model.