Newsvendor Problem -- 30 Days

q= 100 q= 120
INPUT DATA Day Demand Sold Scrap Profit Sold Scrap Profit
Wholesale price c = $0.55 1 169 100 0 45.00 120 0 54.00
Retail price r = $1.00 2 166 100 0 45.00 120 0 54.00
Scrap price s = $0.03 3 129 100 0 45.00 120 0 54.00
Demand parameter m = 135.70 4 159 100 0 45.00 120 0 54.00
Demand parameter s = 27.10 5 131 100 0 45.00 120 0 54.00
6 129 100 0 45.00 120 0 54.00
7 163 100 0 45.00 120 0 54.00
70.00 8 145 100 0 45.00 120 0 54.00
9 110 100 0 45.00 110 10 44.30
60.00 10 125 100 0 45.00 120 0 54.00
11 143 100 0 45.00 120 0 54.00
Mean Daily Profit ($)

12 141 100 0 45.00 120 0 54.00

50.00
13 138 100 0 45.00 120 0 54.00
14 161 100 0 45.00 120 0 54.00
40.00
15 142 100 0 45.00 120 0 54.00
16 110 100 0 45.00 110 10 44.30
30.00
17 88 88 12 33.36 88 32 22.96
18 142 100 0 45.00 120 0 54.00
20.00 19 102 100 0 45.00 102 18 36.54
20 100 100 0 45.00 100 20 34.60
10.00 21 106 100 0 45.00 106 14 40.42
80 100 120 140 160 180 200 22 127 100 0 45.00 120 0 54.00
q (papers)
23 98 98 2 43.06 98 22 32.66
24 161 100 0 45.00 120 0 54.00
25 106 100 0 45.00 106 14 40.42
26 127 100 0 45.00 120 0 54.00
27 177 100 0 45.00 120 0 54.00
28 124 100 0 45.00 120 0 54.00
29 129 100 0 45.00 120 0 54.00
30 124 100 0 45.00 120 0 54.00
E(Profit/Day) 44.55 E(Profit/Day) 49.47
± 0.80 ± 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
140 0 63.00 160 0 72.00 169 11 70.33
140 0 63.00 160 0 72.00 166 14 67.42
129 11 52.33 129 31 41.93 129 51 31.53
140 0 63.00 159 1 71.03 159 21 60.63
131 9 54.27 131 29 43.87 131 49 33.47
129 11 52.33 129 31 41.93 129 51 31.53
140 0 63.00 160 0 72.00 163 17 64.51
140 0 63.00 145 15 57.45 145 35 47.05
110 30 33.90 110 50 23.50 110 70 13.10
125 15 48.45 125 35 38.05 125 55 27.65
140 0 63.00 143 17 55.51 143 37 45.11
140 0 63.00 141 19 53.57 141 39 43.17
138 2 61.06 138 22 50.66 138 42 40.26
140 0 63.00 160 0 72.00 161 19 62.57
140 0 63.00 142 18 54.54 142 38 44.14
110 30 33.90 110 50 23.50 110 70 13.10
88 52 12.56 88 72 2.16 88 92 -8.24
140 0 63.00 142 18 54.54 142 38 44.14
102 38 26.14 102 58 15.74 102 78 5.34
100 40 24.20 100 60 13.80 100 80 3.40
106 34 30.02 106 54 19.62 106 74 9.22
127 13 50.39 127 33 39.99 127 53 29.59
98 42 22.26 98 62 11.86 98 82 1.46
140 0 63.00 160 0 72.00 161 19 62.57
106 34 30.02 106 54 19.62 106 74 9.22
127 13 50.39 127 33 39.99 127 53 29.59
140 0 63.00 160 0 72.00 177 3 78.09
124 16 47.48 124 36 37.08 124 56 26.68
129 11 52.33 129 31 41.93 129 51 31.53
124 16 47.48 124 36 37.08 124 56 26.68
E(Profit/Day) 49.52 E(Profit/Day) 44.03 E(Profit/Day) 34.83
± 5.77 ± 7.85 ± 8.54
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 8 7
8 7 13 7 17 9
17 9 23 10 23 6
30 13 30 7 30 7
30 0 30 0 30 0