loss of goodwill

Unbiased Estimation of Maximum Expected Profits in the Newsvendor Model: A Case Study Analysis.MPRA Paper 40724, University Library of Munich, Germany.

In the current paper we study a real life inventory problem whose operating conditions match to the principles of the classical newsvendor model. Applying appropriate tests to the available sample of historical demand data, we get the sufficient statistical evidences to support that daily demand is stationary, uncorrelated, and normally distributed.