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Newsvendor Model Calculator - Uniform Distribution

Calculates the optimal inventory level for uncertain demand for a perishable product.

The demand follows a uniform distribution (continuous) between Dmax and Dmin.

screenshot

Formula: dMin+(dMax-dMin)*((fcprice-fccost)/fcprice)

Q: The optimal inventory level.
price: The retail price.
cost: The purchase price.
Dmax: The maximum demand
Dmin: The minimum demand

Example

For a retail price of $7, a cost of $5 and a uniform demand between 80 and 50 units, calculate the optimal inventory.

Value Key Display Description
50 Dmin 50.00 Stores the minimum demand.
80 Dmax 80.00 Stores the maximum demand.
5 cost 5.00 Stores the purchase price.
7 price 7.00 Stores the retail price.
  Q 58.57 Calculates the optimal inventory level.

Also see:
Newsvendor Model for a Normal Distribution Formula Calculator
Newsvendor Model for a Lognormal Distribution Formula Calculator

Reference: Newsvendor Model - Wikipedia