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Recall the Sport Obermeyer example covered in class. The table on the right presents the selling price, purchase cost, salvage price and the demand forecast
Recall the Sport Obermeyer example covered in class. The table on the right presents the selling price, purchase cost, salvage price and the demand forecast of men's parkas. Solve the multi-item Newsvendor Problem with a capacity constraint. Calculate and present in a table the optimum order quantities if Obermeyer had a total capacity of only 4500 units. What is the value of lambda that optimizes the constrained problem? If for any particular style lambda results with a probability less than 0.01 then do not order any units of that style. Also calculate the risk of realized unit profit being less than 10% of unit cost for each style. Recall the Sport Obermeyer example covered in class. The table on the right presents the selling price, purchase cost, salvage price and the demand forecast of men's parkas. Solve the multi-item Newsvendor Problem with a capacity constraint. Calculate and present in a table the optimum order quantities if Obermeyer had a total capacity of only 4500 units. What is the value of lambda that optimizes the constrained problem? If for any particular style lambda results with a probability less than 0.01 then do not order any units of that style. Also calculate the risk of realized unit profit being less than 10% of unit cost for each style
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