Newsvendor Problem -- 30 Days

q= 100 q= 120
INPUT DATA Day Demand Sold Scrap Profit Sold Scrap Profit
Wholesale price c = $0.55 1 148 100 0 45.00 120 0 54.00
Retail price r = $1.00 2 87 87 13 32.39 87 33 21.99
Scrap price s = $0.03 3 136 100 0 45.00 120 0 54.00
Demand parameter m = 135.70 4 141 100 0 45.00 120 0 54.00
Demand parameter s = 27.10 5 117 100 0 45.00 117 3 51.09
6 114 100 0 45.00 114 6 48.18
7 125 100 0 45.00 120 0 54.00
70.00 8 81 81 19 26.57 81 39 16.17
9 141 100 0 45.00 120 0 54.00
60.00 10 192 100 0 45.00 120 0 54.00
11 86 86 14 31.42 86 34 21.02
Mean Daily Profit ($)

12 127 100 0 45.00 120 0 54.00

50.00
13 154 100 0 45.00 120 0 54.00
14 123 100 0 45.00 120 0 54.00
40.00
15 114 100 0 45.00 114 6 48.18
16 176 100 0 45.00 120 0 54.00
30.00
17 204 100 0 45.00 120 0 54.00
18 153 100 0 45.00 120 0 54.00
20.00 19 103 100 0 45.00 103 17 37.51
20 114 100 0 45.00 114 6 48.18
10.00 21 113 100 0 45.00 113 7 47.21
80 100 120 140 160 180 200 22 90 90 10 35.30 90 30 24.90
q (papers)
23 147 100 0 45.00 120 0 54.00
24 144 100 0 45.00 120 0 54.00
25 151 100 0 45.00 120 0 54.00
26 159 100 0 45.00 120 0 54.00
27 129 100 0 45.00 120 0 54.00
28 130 100 0 45.00 120 0 54.00
29 149 100 0 45.00 120 0 54.00
30 136 100 0 45.00 120 0 54.00
E(Profit/Day) 43.19 E(Profit/Day) 48.15
± 1.81 ± 4.27
Prob(Loss) 0.00 Prob(Loss) 0.00

Bin Tops Cum. Freq. Cum. Freq.

-40 0 0 0 0
Histogram Data

-20 0 0 0 0
0 0 0 0 0
20 0 0 1 1
40 4 4 5 4
60 30 26 30 25
80 30 0 30 0
100 30 0 30 0
 q= 140 q= 160 q= 180
Sold Scrap Profit Sold Scrap Profit Sold Scrap Profit
140 0 63.00 148 12 60.36 148 32 49.96
87 53 11.59 87 73 1.19 87 93 -9.21
136 4 59.12 136 24 48.72 136 44 38.32
140 0 63.00 141 19 53.57 141 39 43.17
117 23 40.69 117 43 30.29 117 63 19.89
114 26 37.78 114 46 27.38 114 66 16.98
125 15 48.45 125 35 38.05 125 55 27.65
81 59 5.77 81 79 -4.63 81 99 -15.03
140 0 63.00 141 19 53.57 141 39 43.17
140 0 63.00 160 0 72.00 180 0 81.00
86 54 10.62 86 74 0.22 86 94 -10.18
127 13 50.39 127 33 39.99 127 53 29.59
140 0 63.00 154 6 66.18 154 26 55.78
123 17 46.51 123 37 36.11 123 57 25.71
114 26 37.78 114 46 27.38 114 66 16.98
140 0 63.00 160 0 72.00 176 4 77.12
140 0 63.00 160 0 72.00 180 0 81.00
140 0 63.00 153 7 65.21 153 27 54.81
103 37 27.11 103 57 16.71 103 77 6.31
114 26 37.78 114 46 27.38 114 66 16.98
113 27 36.81 113 47 26.41 113 67 16.01
90 50 14.50 90 70 4.10 90 90 -6.30
140 0 63.00 147 13 59.39 147 33 48.99
140 0 63.00 144 16 56.48 144 36 46.08
140 0 63.00 151 9 63.27 151 29 52.87
140 0 63.00 159 1 71.03 159 21 60.63
129 11 52.33 129 31 41.93 129 51 31.53
130 10 53.30 130 30 42.90 130 50 32.50
140 0 63.00 149 11 61.33 149 31 50.93
136 4 59.12 136 24 48.72 136 44 38.32
E(Profit/Day) 48.29 E(Profit/Day) 42.64 E(Profit/Day) 34.05
± 6.86 ± 8.61 ± 9.68
Prob(Loss) 0.00 Prob(Loss) 0.03 Prob(Loss) 0.13

Cum. Freq. Cum. Freq. Cum. Freq.

0 0 0 0 0 0
0 0 0 0 0 0
0 0 1 1 4 4
4 4 5 4 10 6
9 5 13 8 17 7
17 8 21 8 26 9
30 13 30 9 28 2
30 0 30 0 30 2