nieuwsvendor
The newsvendor problem, also known as the single-period inventory problem, is a fundamental model in operations research that addresses how many units to order for a product with uncertain demand and a limited selling period. It is commonly applied to perishable or fashion items, newspapers, or seasonal goods.
In the standard formulation, demand D is a random variable with a known distribution F, and the
The optimal order quantity Q* is determined by the critical fractile: choose Q* such that F(Q*) ≥
Assumptions typically include a single selling period, known demand distribution, and no replenishment within the period.