Selective Newsvendor Problems with All-or-Nothing Order Requests

摘要

Consider a manufacturer that offers a product for a single selling season. Several demand sources (orrnorders) exist for this product, and expected revenue and forecasted demand vary across all markets.rnGiven a long supplier lead time, the manufacturer must choose, in advance of the selling season, thernorders it plans to fulfill as well as the total order quantity requested from its supplier. Previous work onrnthis selective newsvendor problem" assumes normally distributed demands. In fact, a firm may face arnsmall set of unconfirmed orders, and each order will often either come in at a predefined level, or it willrnnot come in at all. We explore solution methods for this all-or-nothing demand case.