Talk:Newsvendor model/Archives/2012

Alternate Names
Added section for alternate names.

A Google search for "newsboy problem" (as suggested in a newsgroup post): http://www.google.com/search?q=site%3Awikipedia.org+%22newsboy+problem%22 returned a hit for only the Italian version of Wikipedia

Google apparently does not index the existing redirect pages: http://en.wikipedia.org/w/index.php?title=Newsvendor_problem&redirect=no http://en.wikipedia.org/w/index.php?title=Newsboy_problem&redirect=no

Ac44ck 17:17, 3 May 2007 (UTC)


 * LOL WUT? --15.203.233.76 (talk) 15:41, 11 March 2009 (UTC)

Someone should post a proof
The numerical example is just plain wrong. Not only is the equation incomplete (it basically reduces to giving Q-star as Dmax*(p-c)/p), but it is not even self-consistent (the answer for the given parameters should be 23, which would be an incorrect stocking level). The equation should give Q-star as μ + z*β*σ, where μ = (Dmax+Dmin)/2, β = (p-c)/p and z = Finv((p-c)/p). Since F is a standard normal distribution, σ can be approximated as (Dmax - Dmin)/8. This returns a value of 63 for the stated parameters. If I were more adept at using the editing tools, I would make these changes myself.

Aloysiuspsd (talk) 22:07, 14 December 2009 (UTC)


 * I think its the equation that he has started with that is not quite what it should. I struggled a bit with that when I added the normal and lognormal calculations the $$ F^{-1} $$ bit is most troublesome because it does not explain where $$ \mu $$ and $$ \sigma $$ fit in.Pkearney (talk) — Preceding unsigned comment added by Pkearney (talk • contribs) 07:15, 29 July 2012 (UTC)

numerical example is wrong
The optimum solution for the numerical example is 58. I obtained the result empirically (with a random number generator, using a computer).

I suppose the formula that is in the text is incorrect. The answer 58.55 (or 59) is not correct.

Also, in a previous section, the user Aloysiuspsd has an error in his calculations. He is considering that the distribution is normal. The text says it is an uniform distribution.


 * Hmmm, not sure, it looks right to me. — Preceding unsigned comment added by Pkearney (talk • contribs) 07:10, 29 July 2012 (UTC)

Normal and Log-Normal Examples
I added the normal and lognormal examples

Pkearney (talk) —Preceding undated comment added 07:08, 29 July 2012 (UTC)