Newsvendor Problem -- 30 Days

q= 100 q= 120
INPUT DATA Day Demand Sold Scrap Profit Sold Scrap Profit
Wholesale price c = $0.55 1 119 100 0 45.00 119 1 53.03
Retail price r = $1.00 2 148 100 0 45.00 120 0 54.00
Scrap price s = $0.03 3 181 100 0 45.00 120 0 54.00
Demand parameter = 135.70 4 107 100 0 45.00 107 13 41.39
Demand parameter = 27.10 5 167 100 0 45.00 120 0 54.00
6 142 100 0 45.00 120 0 54.00
7 106 100 0 45.00 106 14 40.42
70.00 8 115 100 0 45.00 115 5 49.15
9 87 87 13 32.39 87 33 21.99
60.00 10 131 100 0 45.00 120 0 54.00
11 155 100 0 45.00 120 0 54.00
Mean Daily Profit ($)

12 137 100 0 45.00 120 0 54.00

50.00
13 109 100 0 45.00 109 11 43.33
14 101 100 0 45.00 101 19 35.57
40.00
15 146 100 0 45.00 120 0 54.00
16 111 100 0 45.00 111 9 45.27
30.00
17 134 100 0 45.00 120 0 54.00
18 103 100 0 45.00 103 17 37.51
20.00
19 128 100 0 45.00 120 0 54.00
20 97 97 3 42.09 97 23 31.69
10.00
21 127 100 0 45.00 120 0 54.00
80 100 120 140 160 180 200 22 138 100 0 45.00 120 0 54.00
q (papers)
23 125 100 0 45.00 120 0 54.00
24 120 100 0 45.00 120 0 54.00
25 107 100 0 45.00 107 13 41.39
26 135 100 0 45.00 120 0 54.00
27 145 100 0 45.00 120 0 54.00
28 106 100 0 45.00 106 14 40.42
29 115 100 0 45.00 115 5 49.15
30 113 100 0 45.00 113 7 47.21
E(Profit/Day) 44.48 E(Profit/Day) 48.05
0.88 3.13
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 0 0
40 1 1 4 4
60 30 29 30 26
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
119 21 42.63 119 41 32.23 119 61 21.83
140 0 63.00 148 12 60.36 148 32 49.96
140 0 63.00 160 0 72.00 180 0 81.00
107 33 30.99 107 53 20.59 107 73 10.19
140 0 63.00 160 0 72.00 167 13 68.39
140 0 63.00 142 18 54.54 142 38 44.14
106 34 30.02 106 54 19.62 106 74 9.22
115 25 38.75 115 45 28.35 115 65 17.95
87 53 11.59 87 73 1.19 87 93 -9.21
131 9 54.27 131 29 43.87 131 49 33.47
140 0 63.00 155 5 67.15 155 25 56.75
137 3 60.09 137 23 49.69 137 43 39.29
109 31 32.93 109 51 22.53 109 71 12.13
101 39 25.17 101 59 14.77 101 79 4.37
140 0 63.00 146 14 58.42 146 34 48.02
111 29 34.87 111 49 24.47 111 69 14.07
134 6 57.18 134 26 46.78 134 46 36.38
103 37 27.11 103 57 16.71 103 77 6.31
128 12 51.36 128 32 40.96 128 52 30.56
97 43 21.29 97 63 10.89 97 83 0.49
127 13 50.39 127 33 39.99 127 53 29.59
138 2 61.06 138 22 50.66 138 42 40.26
125 15 48.45 125 35 38.05 125 55 27.65
120 20 43.60 120 40 33.20 120 60 22.80
107 33 30.99 107 53 20.59 107 73 10.19
135 5 58.15 135 25 47.75 135 45 37.35
140 0 63.00 145 15 57.45 145 35 47.05
106 34 30.02 106 54 19.62 106 74 9.22
115 25 38.75 115 45 28.35 115 65 17.95
113 27 36.81 113 47 26.41 113 67 16.01
E(Profit/Day) 45.25 E(Profit/Day) 37.31 E(Profit/Day) 27.78
5.75 7.07 7.79
Prob(Loss) 0.00 Prob(Loss) 0.00 Prob(Loss) 0.03

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

0 0 0 0 0 0
0 0 0 0 0 0
0 0 0 0 1 1
1 1 6 6 13 12
13 12 17 11 22 9
21 8 26 9 28 6
30 9 30 4 29 1
30 0 30 0 30 1