This paper considers the classical newsvendor model when demand is normally distributed but with a large coefficient of variation. This leads to observe with a non-negligible probability negative values that do not make sense. To avoid the occurrence of such negative values, first, we derive...

This paper considers the classical newsvendor model when, (a) demand is autocorrelated, (b) the parameters of the marginal distribution of demand are unknown, and (c) historical data for demand are available for a sample of successive periods. An estimator for the optimal order quantity is...

In the current paper we study a real life inventory problem whose operating conditions match to the principles of the classical newsvendor model. Applying appropriate tests to the available sample of historical demand data, we get the sufficient statistical evidences to support that daily demand...