Paper Info
Title
Technical Note---A Note on “The Censored Newsvendor and the Optimal Acquisition of Information”
Abstract
This paper revisits the finite-horizon model of a censored newsvendor by Ding et al. [Ding, X., M. L. Puterman, A. Bisi. 2002. The censored newsvendor and the optimal acquisition of information. Oper. Res.50 517--527]. An important result claimed there without a proper proof is that the myopic order quantity is always less than or equal to the optimal order quantity. Lu et al. [Lu, X., J. S. Song, K. Zhu. 2008. Analysis of perishable inventory systems with censored demand data. Oper. Res.56(4) 1034--1038.] supplied a correct proof of the result. We analyze the same model using the interesting concept of the unnormalized probability, which simplifies the dynamic programming equation considerably and facilitates the proof of the claim. Moreover, it produces the proof of the existence of an optimal solution for an infinite-horizon setting of the problem.
Year
DOI
Venue
2009
10.1287/opre.1080.0609
Operations Research
Keywords
DocType
Volume
optimal acquisition,technical note,myopic order quantity,optimal solution,k. zhu,correct proof,proper proof,j. s. song,important result,optimal order quantity,finite-horizon model,censored newsvendor,censoring
Journal
57
Issue
ISSN
Citations 
3
0030-364X
7
PageRank 
References 
Authors
0.60
5
3
Name
Order
Citations
PageRank
Alain Bensoussan1367170.17
Metin Çakanyildirim215012.59
Suresh Sethi31215255.98