Inventory Decision Models under Stochastic Demand with Two Order Chances

Consider a two-echelon supply chain with one supplier and one retailer, and the products are perishable and sold over a single selling season. According to the classical newsvendor model, the retailer traditionally can only order products before the selling season. This paper discusses a situation in which the retailer can place a second order in the selling season. And supply chain members´ optimal decisions are obtained. We also study how to improve the performance of the supply chain. All our findings are illustrated by a numerical example at last.