The demand forecast for a product has a mean of 400 units and a standard deviation of 100 units. The product is purchased at a unit cost of $15, and is sold at a regular price of $23. The unsold product at the end of the selling season is salvaged at a discounted price of $11. The Newsvendor model is applied to find the optimal stocking quantity. How many units should the company stock to maximize its profit?

Answer rating: 100% (QA)

The Newsvendor model is a classic inventory management model that helps a company determine the opti... View the full answer