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This paper investigates the data-driven pricing newsvendor problem, which focuses on maximizing expected profit by deciding on inventory and pricing levels based on historical demand and feature data. We first build an approximate model by…

Optimization and Control · Mathematics 2023-05-12 Wenxuan Liu , Zhihai Zhang

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

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

The data-driven newsvendor problem with features has recently emerged as a significant area of research, driven by the proliferation of data across various sectors such as retail, supply chains, e-commerce, and healthcare. Given the…

Machine Learning · Statistics 2024-04-25 Tuoyi Zhao , Wen-xin Zhou , Lan Wang

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

Deep generative models (DGMs) are effective on learning multilayered representations of complex data and performing inference of input data by exploring the generative ability. However, little work has been done on examining or empowering…

Machine Learning · Computer Science 2015-12-16 Chongxuan Li , Jun Zhu , Tianlin Shi , Bo Zhang

Deep generative models (DGMs) are effective on learning multilayered representations of complex data and performing inference of input data by exploring the generative ability. However, it is relatively insufficient to empower the…

Computer Vision and Pattern Recognition · Computer Science 2016-11-23 Chongxuan Li , Jun Zhu , Bo Zhang

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

I present a deep reinforcement learning (RL) solution to the mathematical problem known as the Newsvendor model, which seeks to optimize profit given a probabilistic demand distribution. To reflect a more realistic and complex situation,…

Machine Learning · Computer Science 2021-12-28 Dylan K. Goetting

Continuous Conditional Generative Modeling (CCGM) estimates high-dimensional data distributions, such as images, conditioned on scalar continuous variables (aka regression labels). While Continuous Conditional Generative Adversarial…

Computer Vision and Pattern Recognition · Computer Science 2025-08-19 Xin Ding , Yongwei Wang , Kao Zhang , Z. Jane Wang

We present a deep learning solution to address the challenges of simulating realistic synthetic first-price sealed-bid auction data. The complexities encountered in this type of auction data include high-cardinality discrete feature spaces…

General Economics · Economics 2024-11-13 Igor Sadoune , Andrea Lodi , Marcelin Joanis

The rapid expansion of digital commerce platforms has amplified the strategic importance of coordinated pricing and inventory management decisions among competing retailers. Motivated by practices on leading e-commerce platforms, we analyze…

General Economics · Economics 2025-12-02 Hang Wu , Qin Wu , Yue Liu , Mengmeng Shi

While deep generative models~(DGMs) have demonstrated remarkable success in capturing complex data distributions, they consistently fail to learn constraints that encode domain knowledge and thus require constraint integration. Existing…

Machine Learning · Computer Science 2025-02-13 Ruoyan Li , Dipti Ranjan Sahu , Guy Van den Broeck , Zhe Zeng

We consider a data-driven newsvendor problem, where one has access to past demand data and the associated feature information. We solve the problem by estimating the target quantile function using a deep neural network (DNN). The remarkable…

Optimization and Control · Mathematics 2024-10-01 Jinhui Han , Ming Hu , Guohao Shen

We propose a deep generative approach to sampling from a conditional distribution based on a unified formulation of conditional distribution and generalized nonparametric regression function using the noise-outsourcing lemma. The proposed…

Statistics Theory · Mathematics 2021-10-22 Xingyu Zhou , Yuling Jiao , Jin Liu , Jian Huang

Demand forecasting plays an important role in many inventory control problems. To mitigate the potential harms of model misspecification, various forms of distributionally robust optimization have been applied. Although many of these…

Probability · Mathematics 2018-08-21 Linwei Xin , David A. Goldberg

While research of reinforcement learning applied to financial markets predominantly concentrates on finding optimal behaviours, it is worth to realize that the reinforcement learning returns $G_t$ and state value functions themselves are of…

Statistical Finance · Quantitative Finance 2024-05-21 Colin D. Grab

Diffusion-based generative models (DBGMs) perturb data to a target noise distribution and reverse this process to generate samples. The choice of noising process, or inference diffusion process, affects both likelihoods and sample quality.…

Machine Learning · Computer Science 2023-03-06 Raghav Singhal , Mark Goldstein , Rajesh Ranganath

Condition and structural health monitoring (CM/SHM) is a pivotal component of predictive maintenance (PdM) strategies across diverse industrial sectors, including mechanical rotating machinery, aircraft structures, wind turbines, and civil…

Computational Engineering, Finance, and Science · Computer Science 2026-02-17 Xin Yang , Chen Fang , Yunlai Liao , Jian Yang , Konstantinos Gryllias , Dimitrios Chronopoulos

We introduce a novel strategy to address the issue of demand estimation in single-item single-period stochastic inventory optimisation problems. Our strategy analytically combines confidence interval analysis and inventory optimisation. We…

Optimization and Control · Mathematics 2014-09-09 Roberto Rossi , Steven Prestwich , S. Armagan Tarim , Brahim Hnich
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