Newsvendor Problem -- 30 Days

Mean Daily Profit ($)

70
60
50
40
30
20
10
80 100 120 140 160 180 200
q (papers)

Day Demand
1
170
2
153
3
169
4
153
5
164
6
160
7
132
8
161
9
144
10
150
11
86
12
161
13
166
14
160
15
153
16
81
17
132
18
196
19
133
20
152
21
121
22
121
23
132
24
119
25
119
26
143
27
201
28
135
29
144
30
107

Histogram Data

INPUT DATA
Wholesale price c = $0.55
Retail price r = $1.00
Scrap price s = $0.03
Demand parameter m = 135.70
Demand parameter s = 27.10

Bin Tops
-40
-20
0
20
40
60
80
100

q =
Sold Scrap
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
86
14
100
0
100
0
100
0
100
0
81
19
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
100
0
E(Profit/Day)

Prob(Loss)

q =
100
Profit Sold Scrap
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
31.42
86
34
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
26.57
81
39
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
119
1
45.00
119
1
45.00
120
0
45.00
120
0
45.00
120
0
45.00
120
0
45.00
107
13
43.93 E(Profit/Day)
1.53

0.00
Prob(Loss)

Cum. Freq.
0
0
0
0
0
0
0
0
2
2
30
28
30
0
30
0

120
Profit
54.00
54.00
54.00
54.00
54.00
54.00
54.00
54.00
54.00
54.00
21.02
54.00
54.00
54.00
54.00
16.17
54.00
54.00
54.00
54.00
54.00
54.00
54.00
53.03
53.03
54.00
54.00
54.00
54.00
41.39
51.15
3.42
0.00

Cum. Freq.
0
0
0
0
0
0
1
1
2
1
30
28
30
0
30
0

q =
Sold Scrap
140
0
140
0
140
0
140
0
140
0
140
0
132
8
140
0
140
0
140
0
86
54
140
0
140
0
140
0
140
0
81
59
132
8
140
0
133
7
140
0
121
19
121
19
132
8
119
21
119
21
140
0
140
0
135
5
140
0
107
33
E(Profit/Day)

Prob(Loss)

q =
140
Profit Sold Scrap
63.00
160
0
63.00
153
7
63.00
160
0
63.00
153
7
63.00
160
0
63.00
160
0
55.24
132
28
63.00
160
0
63.00
144
16
63.00
150
10
10.62
86
74
63.00
160
0
63.00
160
0
63.00
160
0
63.00
153
7
5.77
81
79
55.24
132
28
63.00
160
0
56.21
133
27
63.00
152
8
44.57
121
39
44.57
121
39
55.24
132
28
42.63
119
41
42.63
119
41
63.00
143
17
63.00
160
0
58.15
135
25
63.00
144
16
30.99
107
53
54.53 E(Profit/Day)
5.65

0.00
Prob(Loss)

Cum. Freq.
0
0
0
0
0
0
2
2
3
1
12
9
30
18
30
0

q =
160
Profit Sold Scrap
72.00
170
10
65.21
153
27
72.00
169
11
65.21
153
27
72.00
164
16
72.00
160
20
44.84
132
48
72.00
161
19
56.48
144
36
62.30
150
30
0.22
86
94
72.00
161
19
72.00
166
14
72.00
160
20
65.21
153
27
-4.63
81
99
44.84
132
48
72.00
180
0
45.81
133
47
64.24
152
28
34.17
121
59
34.17
121
59
44.84
132
48
32.23
119
61
32.23
119
61
55.51
143
37
72.00
180
0
47.75
135
45
56.48
144
36
20.59
107
73
52.92 E(Profit/Day)
8.00

0.03
Prob(Loss)

Cum. Freq.
0
0
0
0
1
1
2
1
7
5
15
8
30
15
30
0

180
Profit
71.30
54.81
70.33
54.81
65.48
61.60
34.44
62.57
46.08
51.90
-10.18
62.57
67.42
61.60
54.81
-15.03
34.44
81.00
35.41
53.84
23.77
23.77
34.44
21.83
21.83
45.11
81.00
37.35
46.08
10.19
44.82
8.97
0.07

Cum. Freq.
0
0
0
0
2
2
3
1
12
9
20
8
28
8
30
2