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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.