Monte-Carlo simulations

Non-negative demand in newsvendor models:The case of singly truncated normal samples, MPRA Paper 31842, University Library of Munich, Germany. Ιn common with Ι. Kevork

This paper considers the classical newsvendor model when demand is normally distributed but with a large coefficient of variation. This leads to observe with a non-negligible probability negative values that do not make sense. To avoid the occurrence of such negative values, first, we derive generalized forms for the optimal order quantity and the maximum expected profit using properties of singly truncated normal distributions.