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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?
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