Monte-Carlo simulations

Validity and precision of estimates in the classical newsvendor model with exponential and rayleigh demand, MPRA Paper 36460, University Library of Munich, Germany.

In this paper we consider the classical newsvendor model with profit maximization. When demand is fully observed in each period and follows either the Rayleigh or the exponential distribution, appropriate estimators for the optimal order quantity and the maximum expected profit are established and their distributions are derived.

Undefined

Pages