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In Lecture 5 ?we extended the newsvendor solution to the infinite - horizon problem under the assumption of lost sales. Now consider the finite -
In Lecture ?we extended the newsvendor solution to the infinite horizon problem under the assumption of lost sales. Now consider the finite horizon version of this problem with N periods where any item that cannot be sold in the last period N can be returned to the suppler for salvage value r at the beginning of period N Can we still extend the newsvendor solution to this finite horizon problem when the unit salvage value r is equal to the unit procurement cost c ?Why or why not?
In Lecture ?we extended the newsvendor solution to the infinite horizon
problem under the assumption of lost sales. Now consider the finite horizon version of
this problem with N periods where any item that cannot be sold in the last period N
can be returned to the suppler for salvage value r at the beginning of period N
Can we still extend the newsvendor solution to this finite horizon problem when the unit
salvage value r is equal to the unit procurement cost c ?Why or why not?
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