By Piet Watté
About this worksheet:
This worksheet using PTC Mathcad shows you how to solve a classical inventory control problem commonly found in operational research. Specifically, the example is of a news vendor who wants to determine the number of copies of a journal he has to source from a publisher each week by looking at cost, loss, and demand.
This worksheet is broken down into four sections:
Each section provides you with valuable background, data, and step by step procedure on how you might solve. At the end of the worksheet the data is plotted on a histogram and in a line graph to demonstrate the solution graphically.
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