A decision support tool for the Newsboy Problem using Visual IFPS/PLUS

• Main Authors: Foo, Siew Chin, Neo, Mei Ling
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::General::Economic and business aspects
• Online Access: http://hdl.handle.net/10356/10727
• Institution: Nanyang Technological University

The intense competition in today's business environment makes it more important than ever for companies to understand the environment in which they operate. There is a need for companies to conduct their business effective and efficiently. Given the significance of inventory in most operations, inventory management represents a key area in which significant improvements can be made. This study is concerned with examining a common investory problem faced by many managers - the newsboy problem. In essence, the newsboy problem is a single period investory problem characterised by a single order opportunity and an uncertain demand. This makes the determination of the optimal order quantity difficult, as holding too much or too little inventory will result in a cost to the company.