Question
The demand forecast for a product has a mean of 400 units and a standard deviation of 100 units. The product is purchased at a
The demand forecast for a product has a mean of 400 units and a standard deviation of 100 units. The product is purchased at a unit cost of $15, and is sold at a regular price of $23. The unsold product at the end of the selling season is salvaged at a discounted price of $11. The Newsvendor model is applied to find the optimal stocking quantity. How many units should the company stock to maximize its profit?
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Matching Supply with Demand An Introduction to Operations Management
Authors: Gerard Cachon, Christian Terwiesch
3rd edition
73525200, 978-0073525204
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