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We study a censored variant of the data-driven newsvendor problem, where the decision-maker must select an ordering quantity that minimizes expected overage and underage costs based only on offline censored sales data, rather than…

Optimization and Control · Mathematics 2026-04-22 Chamsi Hssaine , Sean R. Sinclair

In this work, we study how the relevance/quality and quantity of past data influence performance by analyzing a contextual Newsvendor problem, in which a decision-maker trades off between underage and overage costs under uncertain demand.…

Machine Learning · Computer Science 2025-10-13 Omar Besbes , Will Ma , Omar Mouchtaki

In the Newsvendor problem, the goal is to guess the number that will be drawn from some distribution, with asymmetric consequences for guessing too high vs. too low. In the data-driven version, the distribution is unknown, and one must work…

Machine Learning · Statistics 2026-01-05 Zhuoxin Chen , Will Ma

We propose a Policy Averaging Approach (PAA) that synthesizes the strengths of existing approaches to create more reliable, flexible and justifiable policies for stochastic optimization problems. An important component of the PAA is risk…

Applications · Statistics 2025-03-25 Xiangyu Cui , Nicholas G. Hall , Yun Shi , Tianyuan Su

In retailer management, the Newsvendor problem has widely attracted attention as one of basic inventory models. In the traditional approach to solving this problem, it relies on the probability distribution of the demand. In theory, if the…

Machine Learning · Statistics 2017-06-12 Yanfei Zhang , Junbin Gao

Newsvendor problem is an extensively researched topic in inventory management. In this class of inventory problems, shortage and excess costs are considered to be proportional to the quantity lost. But, for critical goods or commodities,…

Applications · Statistics 2020-07-09 Soham Ghosh , Mamta Sahare , Sujay Mukhoti

How should one leverage historical data when past observations are not perfectly indicative of the future, e.g., due to the presence of unobserved confounders which one cannot "correct" for? Motivated by this question, we study a…

Machine Learning · Computer Science 2025-01-03 Omar Besbes , Will Ma , Omar Mouchtaki

The newsvendor problem is one of the most basic and widely applied inventory models. There are numerous extensions of this problem. If the probability distribution of the demand is known, the problem can be solved analytically. However,…

Machine Learning · Computer Science 2018-03-07 Afshin Oroojlooyjadid , Lawrence Snyder , Martin Takáč

We consider a fundamental generalization of the classical newsvendor problem where the seller needs to decide on the inventory of a product jointly for multiple locations on a metric as well as a fulfillment policy to satisfy the uncertain…

Optimization and Control · Mathematics 2025-06-04 Ayoub Foussoul , Vineet Goyal

We study the regret performance of Sample Average Approximation (SAA) for data-driven newsvendor problems with general convex inventory costs. In literature, the optimality of SAA has not been fully established under both \alpha-global…

Machine Learning · Computer Science 2024-07-09 Jiameng Lyu , Shilin Yuan , Bingkun Zhou , Yuan Zhou

Data-Augmentation (DA) is known to improve performance across tasks and datasets. We propose a method to theoretically analyze the effect of DA and study questions such as: how many augmented samples are needed to correctly estimate the…

Machine Learning · Computer Science 2022-02-18 Randall Balestriero , Ishan Misra , Yann LeCun

We study the feature-based newsvendor problem, in which a decision-maker has access to historical data consisting of demand observations and exogenous features. In this setting, we investigate feature selection, aiming to derive sparse,…

Machine Learning · Computer Science 2022-09-13 Breno Serrano , Stefan Minner , Maximilian Schiffer , Thibaut Vidal

We examine a stochastic formulation for data-driven optimization wherein the decision-maker is not privy to the true distribution, but has knowledge that it lies in some hypothesis set and possesses a historical data set, from which…

Optimization and Control · Mathematics 2023-09-21 Gar Goei Loke , Taozeng Zhu , Ruiting Zuo

In many data-driven decision-making problems, performance guarantees often depend heavily on the correctness of model assumptions, which may frequently fail in practice. We address this issue in the context of a feature-based newsvendor…

Machine Learning · Computer Science 2024-12-18 Junyu Cao

We consider a model where an agent has a repeated decision to make and wishes to maximize their total payoff. Payoffs are influenced by an action taken by the agent, but also an unknown state of the world that evolves over time. Before…

Computer Science and Game Theory · Computer Science 2021-01-20 Nicole Immorlica , Ian Kash , Brendan Lucier

We consider the problem of purchasing data for machine learning or statistical estimation. The data analyst has a budget to purchase datasets from multiple data providers. She does not have any test data that can be used to evaluate the…

Computer Science and Game Theory · Computer Science 2020-10-30 Yiling Chen , Yiheng Shen , Shuran Zheng

A central issue of many statistical learning problems is to select an appropriate model from a set of candidate models. Large models tend to inflate the variance (or overfitting), while small models tend to cause biases (or underfitting)…

Statistics Theory · Mathematics 2020-12-25 Jie Ding , Enmao Diao , Jiawei Zhou , Vahid Tarokh

The classic newsvendor model yields an optimal decision for a ``newsvendor'' selecting a quantity of inventory, under the assumption that the demand is drawn from a known distribution. Motivated by applications such as cloud provisioning…

Optimization and Control · Mathematics 2025-02-21 Lin An , Andrew A. Li , Benjamin Moseley , R. Ravi

We study optimization for data-driven decision-making when we have observations of the uncertain parameters within the optimization model together with concurrent observations of covariates. Given a new covariate observation, the goal is to…

Optimization and Control · Mathematics 2022-07-28 Rohit Kannan , Güzin Bayraksan , James R. Luedtke

Classical supervised learning produces unreliable models when training and target distributions differ, with most existing solutions requiring samples from the target domain. We propose a proactive approach which learns a relationship in…

Machine Learning · Statistics 2019-03-01 Adarsh Subbaswamy , Peter Schulam , Suchi Saria
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