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Managing Inventories: The Newsvendor Model
Raz, Gal
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Managing Inventories: The Newsvendor Model
Raz, Gal Technical Note OM-1456 / Published November 4, 2011 / 5 pages.
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Product Overview

This note uses the traditional newsvendor model to present strategies for inventory management when demand is uncertain. Methods for determining the critical ratio of overage and underage costs and the optimal stock level are discussed.




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  • Overview

    This note uses the traditional newsvendor model to present strategies for inventory management when demand is uncertain. Methods for determining the critical ratio of overage and underage costs and the optimal stock level are discussed.

  • Learning Objectives

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