Newsvendor Problem -- 30 Days100 120

INPUT DATA Day Demand Sold Scrap Profit Sold Scrap Profit$0.55 1 125 100 0 45.00 120 0 54.00$1.00 2 142 100 0 45.00 120 0 54.00$0.03 3 103 100 0 45.00 103 17 37.51

135.70 4 146 100 0 45.00 120 0 54.0027.10 5 140 100 0 45.00 120 0 54.00

6 77 77 23 22.69 77 43 12.297 93 93 7 38.21 93 27 27.818 138 100 0 45.00 120 0 54.009 156 100 0 45.00 120 0 54.00

10 144 100 0 45.00 120 0 54.0011 102 100 0 45.00 102 18 36.5412 208 100 0 45.00 120 0 54.0013 145 100 0 45.00 120 0 54.0014 173 100 0 45.00 120 0 54.0015 215 100 0 45.00 120 0 54.0016 99 99 1 44.03 99 21 33.6317 108 100 0 45.00 108 12 42.3618 138 100 0 45.00 120 0 54.0019 147 100 0 45.00 120 0 54.0020 144 100 0 45.00 120 0 54.0021 81 81 19 26.57 81 39 16.1722 128 100 0 45.00 120 0 54.0023 137 100 0 45.00 120 0 54.0024 97 97 3 42.09 97 23 31.6925 161 100 0 45.00 120 0 54.0026 136 100 0 45.00 120 0 54.0027 147 100 0 45.00 120 0 54.0028 114 100 0 45.00 114 6 48.1829 119 100 0 45.00 119 1 53.0330 155 100 0 45.00 120 0 54.00

E(Profit/Day) 43.29 E(Profit/Day) 47.31± 1.97 ± 4.48

Prob(Loss) 0.00 Prob(Loss) 0.00

His

tog

ram

Da

ta

Bin Tops Cum. Freq. Cum. Freq.-40 0 0 0 0-20 0 0 0 0

0 0 0 0 020 0 0 2 240 3 3 7 560 30 27 30 2380 30 0 30 0

100 30 0 30 0

q = q =

Wholesale price c =Retail price r =Scrap price s =

Demand parameter m =Demand parameter s =

80 100 120 140 160 180 20010

20

30

40

50

60

70

q (papers)

Mea

n D

aily

Pro

fit

($)

140 160 180Sold Scrap Profit Sold Scrap Profit Sold Scrap Profit

125 15 48.45 125 35 38.05 125 55 27.65140 0 63.00 142 18 54.54 142 38 44.14103 37 27.11 103 57 16.71 103 77 6.31140 0 63.00 146 14 58.42 146 34 48.02140 0 63.00 140 20 52.60 140 40 42.20

77 63 1.89 77 83 -8.51 77 103 ###93 47 17.41 93 67 7.01 93 87 -3.39

138 2 61.06 138 22 50.66 138 42 40.26140 0 63.00 156 4 68.12 156 24 57.72140 0 63.00 144 16 56.48 144 36 46.08102 38 26.14 102 58 15.74 102 78 5.34140 0 63.00 160 0 72.00 180 0 81.00140 0 63.00 145 15 57.45 145 35 47.05140 0 63.00 160 0 72.00 173 7 74.21140 0 63.00 160 0 72.00 180 0 81.00

99 41 23.23 99 61 12.83 99 81 2.43108 32 31.96 108 52 21.56 108 72 11.16138 2 61.06 138 22 50.66 138 42 40.26140 0 63.00 147 13 59.39 147 33 48.99140 0 63.00 144 16 56.48 144 36 46.08

81 59 5.77 81 79 -4.63 81 99 ###128 12 51.36 128 32 40.96 128 52 30.56137 3 60.09 137 23 49.69 137 43 39.29

97 43 21.29 97 63 10.89 97 83 0.49140 0 63.00 160 0 72.00 161 19 62.57136 4 59.12 136 24 48.72 136 44 38.32140 0 63.00 147 13 59.39 147 33 48.99114 26 37.78 114 46 27.38 114 66 16.98119 21 42.63 119 41 32.23 119 61 21.83140 0 63.00 155 5 67.15 155 25 56.75

E(Profit/Day) 48.61 E(Profit/Day) 42.93 E(Profit/Day) 34.28± 7.35 ± 8.98 ± 9.96

Prob(Loss) 0.00 Prob(Loss) 0.07 Prob(Loss) 0.10

Cum. Freq. Cum. Freq. Cum. Freq.0 0 0 0 0 00 0 0 0 0 00 0 2 2 3 33 3 7 5 9 69 6 11 4 14 5

13 4 24 13 26 1230 17 30 6 28 230 0 30 0 30 2

q = q = q =