coordinated inventory and sales effort management when demand is unobservable hans sebastian heese 1 jayashankar m swaminathan kenan flagler business school university of north carolina at chapel hill nc 27599 3490 december 2003 draft copy do not cite or distribute without the authors permission email seb unc edu abstract in this paper we examine consequences joint stocking decisions for a single product formulate stochastic dynamic program with bayesian updates show that anticipating effect current on accuracy future information it optimal to stock more products order decrease probability stockout an ability affect through amplifies value should be reduced further counter intuition our results suggest times can exert only very little promotional accompanying introduction new extensive computational study evaluate performance simple heuristic characterize which considering informational
