HW2.pdf - HW2 1 Flextrola problem Use Excel to answer all...

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HW21. Flextrola problem. Use Excel to answer all the questions.2. Newsvendor problem: everyday morning, a newsboy buysxnewspapers at unit pricecbefore seeing the demand. He then sells at pricepduring daytime, and salvages the leftoverat pricevin the evening. The daily demandYis a random variable, with probability densityfunction (PDF)f(y) and cumulative distribution function (CDF)F(y).(i) Show that the optimal order quantityxisF(x) =p-cp-v.(1)(ii) Use formula (1) to find the optimal order quantityxfor the Flextrola problem. Compareit with the simulation solution. What’s the difference?

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