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    NewPaper Problem

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    shashwat2010
    The document describes a newspaper seller's problem of determining the optimal number of papers to purchase each day. It provides the costs, selling prices, and probabilities of different demand levels. A simulation is run for 20 days, recording profits from sales and excess or leftover papers. The optimal number is found by calculating profit as the difference of revenue, costs, lost profit from unmet demand, and salvage value of leftover papers. Random numbers are used to simulate demand levels and types of days over the 20 days.

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    NewPaper Problem

    Uploaded by

    shashwat2010
    19 views12 pages
    The document describes a newspaper seller's problem of determining the optimal number of papers to purchase each day. It provides the costs, selling prices, and probabilities of different demand levels. A simulation is run for 20 days, recording profits from sales and excess or leftover papers. The optimal number is found by calculating profit as the difference of revenue, costs, lost profit from unmet demand, and salvage value of leftover papers. Random numbers are used to simulate demand levels and types of days over the 20 days.

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    The document describes a newspaper seller's problem of determining the optimal number of papers to purchase each day. It provides the costs, selling prices, and probabilities of different demand levels. A simulation is run for 20 days, recording profits from sales and excess or leftover papers. The optimal number is found by calculating profit as the difference of revenue, costs, lost profit from unmet demand, and salvage value of leftover papers. Random numbers are used to simulate demand levels and types of days over the 20 days.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    19 views12 pages

    NewPaper Problem

    Uploaded by

    shashwat2010
    The document describes a newspaper seller's problem of determining the optimal number of papers to purchase each day. It provides the costs, selling prices, and probabilities of different demand levels. A simulation is run for 20 days, recording profits from sales and excess or leftover papers. The optimal number is found by calculating profit as the difference of revenue, costs, lost profit from unmet demand, and salvage value of leftover papers. Random numbers are used to simulate demand levels and types of days over the 20 days.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 12

    Shashwat Shriparv

    dwivedishashwat@gmail.com
    InfinitySoft
    Problem :

    To determine the optimal no: of papers


    the newspaper seller should purchase.
    Solution:

    Simulating demands for 20 days and


    recording profits from sales each day.
    Problem Description
    Cost price = 33 cents

    Selling price = 50 cents

    Newspaper not sold at the end of the day are sold as


    scrap for 5 cents

    Newspaper can be purchased in bundles of 10.


    Three types of news days
    &corresponding probabilities

    Good(0.35)
    Fair(0.45)
    Poor(0.20)
    Profit ?

    Profit = [ ( revenue from sales ) –


    ( cost of newspapers ) –
    ( lost profit from excess demand ) +
    ( salvage from sale of scrap papers ) ]
    Demand Probability Distribution
    Demand Good Fair Poor

    40 0.03 0.10 0.44


    50 0.05 0.18 0.22
    60 0.15 0.40 0.16
    70 0.20 0.20 0.12
    80 0.35 0.08 0.06
    90 0.15 0.04 0.00
    100 0.07 0.00 0.00
    Types of Cumulative Random-
    Newsday Probability Probability Digit
    Assignment

    Good 0.35 0.35 01-35

    Fair 0.45 0.80 36-80

    Poor 0.20 1.00 81-00


    Cumulative Random-Digit
    Demand Distribution Assignment
    Good Fair Poor Good Fair Poor

    40 0.03 0.10 0.44 01-03 01-10 01-44


    50 0.08 0.28 0.66 04-08 11-28 45-66
    60 0.23 0.68 0.82 09-23 29-68 67-82
    70 0.43 0.88 0.94 24-43 69-88 83-94
    80 0.78 0.96 1.00 44-78 89-96 95-00
    90 0.93 1.00 1.00 79-93 97-00
    100 1.00 1.00 1.00 94-00
    Shashwat Shriparv
    dwivedishashwat@gmail.com
    InfinitySoft

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