How many meals should Lufthansa order?

The Poisson distribution table and Poisson loss function table are in the formula sheet

Download formula sheet, where you should associate "S" (first column) with order quantity "Q".

You will normally not find an order quantify for which Pr(Demand=CR. In other words, if the critical ratio falls between two entries in the table, then choose the entry with the larger quantity.

Newsvendor Lufthansa must decide how many meals to load on its daily 6 pm non-stop flight from Frankfurt to Munich. The meals are sold on board to economy class passengers for $10.00 and cost the airline $4.00 each. All meal orders must be made at least 48 hours before the flight departs. Any meals left over at the end of the flight are tossed into the trash by the ground clean-up crew. Lufthansa estimates that the demand for the meals on this flight is Poisson distributed with a mean of 9