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The newsboy model-Optimal Policy for Discrete Demand Example 5.2-Mac's newsstand f(4)=3/52 is obtained by dividing frequencies 4(the numbers of times 3 that a given weekly demand 4 occur during a year,i.e. 52 weeks)by 52; The critical ratio is 0.77,which corresponds to a value of F(Q) between Q=14 and Q=15. Q fQ) F(Q) Q fQ) F(Q) Q fQ) F(Q) 0 1/52 0.02 8 4/52 0.25 16 1/52 0.81 1 0 0.02 9 6/52 0.37 17 3/52 0.87 2 0 0.02 10 2/52 0.40 18 3/52 0.92 3 0 0.02 11 5/52 0.50 19 3/52 0.98 4 3/52 0.08 12 4/52 0.58 20 0 0.98 5 1/52 0.10 13 1/52 0.60 21 0 0.98 6 2/52 0.13 14 5/52 0.69 22 1/52 1.00 7 2/52 0.17 15 5/52 0.79The newsboy model- Optimal Policy for Discrete Demand Example 5.2- Mac’s newsstand • f(4) =3/52 is obtained by dividing frequencies 4 (the numbers of times 3 that a given weekly demand 4 occur during a year, i.e. 52 weeks) by 52; • The critical ratio is 0.77, which corresponds to a value of F(Q) between Q=14 and Q=15. Q f(Q) F(Q) Q f(Q) F(Q) Q f(Q) F(Q) 0 1/52 0.02 8 4/52 0.25 16 1/52 0.81 1 0 0.02 9 6/52 0.37 17 3/52 0.87 2 0 0.02 10 2/52 0.40 18 3/52 0.92 3 0 0.02 11 5/52 0.50 19 3/52 0.98 4 3/52 0.08 12 4/52 0.58 20 0 0.98 5 1/52 0.10 13 1/52 0.60 21 0 0.98 6 2/52 0.13 14 5/52 0.69 22 1/52 1.00 7 2/52 0.17 15 5/52 0.79
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