Sensitivity analysis of the newsboy model

dc.contributor.author	Khanra, Avijit
dc.contributor.author	Soman, Chetan
dc.date.accessioned	2013-11-26T09:08:00Z
dc.date.available	2013-11-26T09:08:00Z
dc.date.copyright	2013-09
dc.date.issued	2013-11-26
dc.identifier.uri	http://hdl.handle.net/11718/11447
dc.description.abstract	Sensitivity analysis is an integral part of inventory optimization models due to uncertainty associated with estimates of model parameters. Though the newsboy problem is one of the most researched inventory problems, very little is known about its robustness. We study sensitivity of expected demand-supply mismatch cost to sub-optimal ordering decisions in the newsboy model. Conditions for symmetry (skewness) of cost deviation have been identi ed and magnitude of cost deviation is demonstrated for normal demand distribution. We found the newsboy model to be sensitive to sub-optimal ordering decisions, much more sensitive than the economic order quantity model.	en_US
dc.language.iso	en	en_US
dc.relation.ispartofseries	;W.P. No. 2013-09-03
dc.subject	Sensitivity analysis	en_US
dc.title	Sensitivity analysis of the newsboy model	en_US
dc.type	Working Paper	en_US