Newsvendor Model

This model creates an scenario in which a newspaper vendor must decide how many copies of the day's paper to stock in the face of uncertain demand and knowing that unsold copies will be worthless at the end of the day.

#critical-fractile

Zettelkasten, July 22nd, 2021.

Notes

The newsvendor model is a mathematical model in operations management and economics used to optimize inventory levels.
It's characterizde by fixed prices and uncertain demand for a perishable product.
This model creates an scenario in which a newspaper vendor must decide how many copies of the day's paper to stock in the face of uncertain demand and knowing that unsold copies will be worthless at the end of the day.

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