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Author:Carr, S.
Lovejoy, W.
Title:The inverse newsvendor problem: choosing an optimal demand portfolio for capacitated resources
Journal:Management Science
2000 : JUL, VOL. 46:7, p. 912-927
Index terms:CAPACITY
ALLOCATION
DEMAND
Language:eng
Abstract:The classical newsvendor problem is one of optimally choosing a level of capacity to respond to a known demand distribution. The inverse newsvendor problem is one of optimally choosing a demand distribution with fixed capacity. The applications of the inverse problem include industrial settings where demand management is relatively less costly than capacity adjustments. Demand distributions are chosen from an opportunity set, which reflects the set of market opportunities for the firm.
SCIMA record nr: 220170
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