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Mathematics, 26.11.2019 04:31 rfultz27
Anewsvendor sells newspapers and tries to maximize profit. the number of papers sold each day is a random variable. analysis of historical data shows that the distribution of daily demand follows a poisson distribution with a rate of λ = 32 papers per day. each paper costs the vendor 0.5$. the vendor sells the paper for 1$. any unsold paper is returned to the publisher for a credit of 0.1$. any unsatisfied demand is estimated to cost 0.1$ in goodwill and lost profit. use @risk to develop a simulation model to estimate the distribution of the daily profit for the newsvendor under the policy that the newsvendor orders a quantify equal to the preceding day’s demand (assume that order on day 0 is 32).
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Anewsvendor sells newspapers and tries to maximize profit. the number of papers sold each day is a r...
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