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Managing Inventories: The Newsvendor Mod...

Raz, Gal

Technical Note

Managing Inventories: The Newsvendor Model

Raz, Gal

OM-1456 | Published November 4, 2011 | 5 pages Technical Note

Collection: Darden School of Business

Product Details

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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