Abstract
Distribution-free newsvendor models often assume continuous demand distributions to facilitate analysis and computation. However, in practice, discrete demand is a natural phenomenon. So far, there exists no analytical and computational results in the literature under this setting. Thus, the goal of this paper is to investigate the newsvendor problems with partial information when the demand is discrete and solve them using the so-called discrete moment problems. Numerical results are presented to illustrate the value of discrete information.
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The authors would like to thank the referees for the constructive comments and discussions that led to this improved version of the paper.
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Ninh, A., Hu, H. & Allen, D. Robust newsvendor problems: effect of discrete demands. Ann Oper Res 275, 607–621 (2019). https://doi.org/10.1007/s10479-018-3016-7
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DOI: https://doi.org/10.1007/s10479-018-3016-7