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Unformatted text preview: and the critical fractile is 0.77. Example
Solve the newsstand problem by using empirical
distribution derived from one year of history of the
demand. 3 Extension to Multiple Planning Periods
Assumption made in the newsboy model was that the
items are perishable and could not be used to satisfy
demand in the subsequent periods.
However, in most situations, products are durable and
can be stored to satisfy future demand.
The interpretation of co and cu will be different.
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- Spring '14