The Newsvendor Problem

  • Evan L. Porteus
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 115)

The newsvendor problem has numerous applications for decision making in manufacturing and service industries as well as decision making by individuals. It occurs whenever the amount needed of a given resource is random, a decision must be made regarding the amount of the resource to have available prior to finding out how much is needed, and the economic consequences of having “too much” and “too little” are known.


Stock Level Optimal Order Quantity Demand Distribution Demand Quantity Newsvendor Problem 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



The author wishes to thank Matthew Sobel for his comments and suggestions leading to a much improved document and Linda Bethel for helping convert the author's LaTex document into Word.


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© Springer Science+Business Media, LLC 2008

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  • Evan L. Porteus

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