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Questions tagged [newsvendor]

For questions related to the newsvendor problem, which optimizes the inventory action in a single period under stochastic demand in order to balance the tradeoff between ordering too much (and having excess inventory) and ordering too little (and experiencing stockouts).

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11 votes
2 answers

Is a "multistep" or "multiphase" Newsvendor model possible?

I'm trying to address the question of how many times should I order a product from my supplier, assuming highly stochastic demand. In my mind there would be something like the Newsvendor model, but ...
Skander H.'s user avatar
  • 2,139
6 votes
2 answers

Three newsvendor functions, three optimal solutions—which is correct?

Here is a typical setup for the newsvendor problem: The newsvendor buys newspapers for $c$ each, sells them for $r$ each, and salvages unsold newspapers for $v$ each. The demand distribution has ...
LarrySnyder610's user avatar