Solves a classic example of an inventory control problem with uncertain demand using PTC Mathcad
Applicable in operational research across all industries
Performs cost per unit of positive inventory, cost per unit of unsatisfied demand, demand, calculus, standard normal distribution function, random number generation, standard deviation, histograms, etc
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.