A newsvendor buys daily newspaper at the beginning of the day with a purchasing price $0.30/unit.
During the day, the newsvendor sells to customer with a selling price $1/unit; customer demand has a normal distribution with mean 100 and standard deviation 20.
At the end of the day, if there is unsold newspaper, the newsvendor can return them to the newspaper publisher with a salvage price $0.10/unit.
What is the optimal order (purchasing) quantity the newsvendor should buy at the beginning of the day? Please upload your answer Excel file to your detailed calculations and support.
1. use an American English
2. This is the book title in case the writer need it.
An Introduction to Management Science: Quantitative Approaches to Decision Making, by David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran, Michael J. Fry, and Jeffrey W. Ohlmann, 14th Edition, Cengage Learning, ISBN: 978-1-111-82361-0.