As stated above, the conventional approach to analyze the newsvendor model is based on the expected profit maximization (EPM), which considers that a newsvendor selects an order quantity
to maximize his expected profit.
The order quantity
is the quantity of goods that company is ordering from its supplier.
The standard EOQ can be multiplied by a factor: (1/(1 - i/K)) (1/2) where "K" is the holding rate and "i" the inflation rate to yield an adjusted order quantity
. This approach may be compared to Mehra and Amini by using an example from Mehra et al..
In the RE equilibrium, all consumers buy immediately, and the risk-averse newsvendor's retail price and order quantity
are characterized by
The bigger deviation from previous order quantity
trend results with stronger Bullwhip effect.
After normalizing the order quantity
on the average level, the model needs additional period for stabilization of inventory level.
total quantity or scope: Minimum order quantity
34 150 pairs additional estimated purchase order quantity
168 200 pairs
minimum order quantity
= 0, Estimated order quantity
= 4 779 pieces, Maximum quantity = 5 735 pieces in connection with a framework agreement with a term of 24 months with the option of a one-time extension of 12 months
Total quantity or scope: minimum order quantity
37099a plated wet weather jacket 3 color camouflage (ftd) 69,580 pieces 37098a wet weather pants 3 ftd 69.580 pieces 37295a wet weather jacket 5 ftd 110.400 pieces 37269a wet weather pants 5 ftd 110.400 pieces additional estimated purchase order quantity
37099a wet weather jacket 3 ftd 113.000 pieces 37098a wet weather pants 3 ftd 113.000 pieces 37295a wet weather jacket 5 ftd 81.500 pieces 37269a wet weather pants 5 ftd 81.500 pieces
- minimum order quantity
: 1 single order, - estimated order quantity
: 8 individual orders, - maximum order quantity
: 10 individual orders.
Minimum order quantity
: jackets 21 536 pieces pants 21 036 pieces additional estimated purchase order quantity
: jackets 12 600 pieces pants 12 450 pieces maximum order quantities jackets 45 000 pieces pants 44 000 pieces
visitor chairs with four-legged frame estimated order quantity
: 14,424 pcs.