Censored Newsvendor Model Revisited with Unnormalized Probabilities

摘要: This paper revisits the model of censored newsvendor presented by Ding, Puterman and Bisi (2002). We analyze that in an infinite-horizon context using interesting concept unnormalized probabilities. The probabilities considerably simplify dynamic programming equation facilitate proof existence optimal policy. They can also be used to give a simple, alternative Ding et al.'s claim myopic order quantity is always less than or equal quantity. Importantly, treat other important operations research problems with partial observations.