Business, 25.05.2021 16:20 angellynn581

Consider two products A and B that have identical cost, retail price and demand parameters (demand is normally distributed) and the same short selling season (the summer months from May through August). The newsvendor model is used to manage inventory for both products. Product A is to be discontinued at the end of the season this year, and the leftovers will be salvaged at 75% of the cost. Product B will be re-offered next summer, so any leftovers this year can be carried over to the next year while incurring a holding cost on each unit left over equal to 20% of the product's cost. How do the optimal stocking quantities for these products compare

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Consider two products A and B that have identical cost, retail price and demand parameters (demand i...

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