| Article ID: | iaor2009724 |
| Country: | Netherlands |
| Volume: | 36 |
| Issue: | 1 |
| Start Page Number: | 110 |
| End Page Number: | 116 |
| Publication Date: | Jan 2008 |
| Journal: | Operations Research Letters |
| Authors: | Shanthikumar J. George, Shen Zuo-Jun Max, Chu Leon Yang |
| Keywords: | Bayesian modelling, newsboy problem |
For the newsvendor problem with ambiguous demand, it is known that integrating parameter estimation and optimization using operational statistics leads to better solutions compared with the traditional approach. However, it is an open question how to find the optimal operational statistic. We show how to do it in this paper.