Newsvendor Problem -- 30 Days

q = 100 q = 120
INPUT DATA Day Demand Sold Scrap Profit Sold Scrap Profit
Wholesale price c = $0.55 1 168 100 0 45.00 120 0 65.00
Retail price r = $1.00 2 146 100 0 45.00 120 0 65.00
Scrap price s = $0.03 3 111 100 0 45.00 111 9 56.27
Demand parameter m = 135.70 4 169 100 0 45.00 120 0 65.00
Demand parameter s = 27.10 5 68 68 32 13.96 68 52 14.56
6 140 100 0 45.00 120 0 65.00
7 152 100 0 45.00 120 0 65.00
70 8 136 100 0 45.00 120 0 65.00
9 156 100 0 45.00 120 0 65.00
60 10 91 91 9 36.27 91 29 36.87
Mean Daily Profit ($)

11 136 100 0 45.00 120 0 65.00

50 12 167 100 0 45.00 120 0 65.00
13 162 100 0 45.00 120 0 65.00
40 14 130 100 0 45.00 120 0 65.00
15 122 100 0 45.00 120 0 65.00
30 16 140 100 0 45.00 120 0 65.00
17 122 100 0 45.00 120 0 65.00
20 18 156 100 0 45.00 120 0 65.00
19 156 100 0 45.00 120 0 65.00
10 20 111 100 0 45.00 111 9 56.27
80 100 120 140 160 180 200 21 99 99 1 44.03 99 21 44.63
q (papers) 22 141 100 0 45.00 120 0 65.00
23 162 100 0 45.00 120 0 65.00
24 165 100 0 45.00 120 0 65.00
25 104 100 0 45.00 104 16 49.48
26 123 100 0 45.00 120 0 65.00
27 124 100 0 45.00 120 0 65.00
28 137 100 0 45.00 120 0 65.00
29 107 100 0 45.00 107 13 52.39
30 150 100 0 45.00 120 0 65.00
E(Profit/Day) 43.64 E(Profit/Day) 60.18
For 95% CI, t-value 2.0452 ± 2.18 ± 4.16
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 1 1 1 1
40 2 1 2 1
60 30 28 7 5
80 30 0 30 23
100 30 0 30 0
 q = 140 q = 160 q = 180
Sold Scrap Profit Sold Scrap Profit Sold Scrap Profit
140 0 74.00 160 0 83.00 168 12 80.36
140 0 74.00 146 14 69.42 146 34 59.02
111 29 45.87 111 49 35.47 111 69 25.07
140 0 74.00 160 0 83.00 169 11 81.33
68 72 4.16 68 92 -6.24 68 112 -16.64
140 0 74.00 140 20 63.60 140 40 53.20
140 0 74.00 152 8 75.24 152 28 64.84
136 4 70.12 136 24 59.72 136 44 49.32
140 0 74.00 156 4 79.12 156 24 68.72
91 49 26.47 91 69 16.07 91 89 5.67
136 4 70.12 136 24 59.72 136 44 49.32
140 0 74.00 160 0 83.00 167 13 79.39
140 0 74.00 160 0 83.00 162 18 74.54
130 10 64.30 130 30 53.90 130 50 43.50
122 18 56.54 122 38 46.14 122 58 35.74
140 0 74.00 140 20 63.60 140 40 53.20
122 18 56.54 122 38 46.14 122 58 35.74
140 0 74.00 156 4 79.12 156 24 68.72
140 0 74.00 156 4 79.12 156 24 68.72
111 29 45.87 111 49 35.47 111 69 25.07
99 41 34.23 99 61 23.83 99 81 13.43
140 0 74.00 141 19 64.57 141 39 54.17
140 0 74.00 160 0 83.00 162 18 74.54
140 0 74.00 160 0 83.00 165 15 77.45
104 36 39.08 104 56 28.68 104 76 18.28
123 17 57.51 123 37 47.11 123 57 36.71
124 16 58.48 124 36 48.08 124 56 37.68
137 3 71.09 137 23 60.69 137 43 50.29
107 33 41.99 107 53 31.59 107 73 21.19
140 0 74.00 150 10 73.30 150 30 62.90
E(Profit/Day) 61.75 E(Profit/Day) 57.72 E(Profit/Day) 48.38
± 6.69 ± 8.77 ± 9.25
Prob(Loss) 0.00 Prob(Loss) 0.03 Prob(Loss) 0.03

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

0 0 0 0 0 0
0 0 0 0 0 0
0 0 1 1 1 1
1 1 2 1 4 3
4 3 7 5 11 7
11 7 14 7 19 8
30 19 24 10 28 9
30 0 30 6 30 2