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ENTERED DISCRETE DEMAND OPTIMIZATION

Newsvendor Single Period Inventory Calculator

Find the smallest optimal whole-unit single-period order and expected profit from an entered finite weighted demand distribution.

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Calculation steps

Work through one step at a time or reveal the complete calculation. The steps use your current inputs.

    How to calculate

    Normalize scenario weights, apply the underage/overage critical fractile and evaluate the resulting finite-distribution profit.

    Critical fractile=(price−cost)/(price−salvage); profit=p×min(demand,Q)+salvage×max(Q−demand,0)−cost×Q

    Worked example

    Demand 0,10,20 with weights 1,2,1 and prices selling 10, cost 4, salvage 1 give critical fractile 2/3. The smallest reaching quantile is Q=10, with expected profit 37.5.

    Assumptions and input details

    1–200 scenarios with whole demand 0–1e6 and nonnegative weights of positive total. Equal demand values are merged. Requires selling price > cost > salvage ≥0. Assume one purchase period, constant prices, unlimited procurement and lost sales without shortage penalty. Probabilities are entered scenarios, not inferred forecasts. No financing, replenishment constraints, actual demand validation or profit guarantee is supplied.

    Using this calculator

    Can I enter my own problem?

    Yes. Replace the example values with your own inputs. The result, calculation steps, tables and applicable diagrams update from those inputs. Blank or invalid values clear the result; example values are never silently substituted for missing inputs.

    Are the results exact?

    Results use floating-point arithmetic and displayed rounding. Read the formula, assumptions and any stated data precision before interpreting the result.

    Is my input uploaded?

    The calculation runs in your browser. No account, file upload or external AI service is required. Inputs are not saved between page reloads.

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