Optimal flexible capacity in newsboy problem under stochastic demand and lead-time

Kamran Karimi Movahed; Ali Ghodratnama

Volume 6, Issue 1 , June 2019, , Pages 18-45


  In this paper, we consider a newsvendor who is going to invest on dedicated or flexible capacity, our goal is to find the optimal investment policy to maximize total profit while the newsvendor faces uncertainty in lead time and demand simultaneously. As highlighted in literature, demand is stochastic, ...  Read More