What is the newsvendor model and how does help match supply and demand?
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Heya...
Newsvendor model ..
It is a mathmatical model used in operation management but in economics it is used to determine optimum inventory levels .. It is characterized by fixed prices and uncertain demand for perishable items...
Perishable goods r those goods which get spoil in a short period...
This model affect to their supply and demand...
For clearing the stock seller reduce prices for these goods these increase the supply and demand also...
So people get good in low price and seller clear their stocks..
Newsvendor model ..
It is a mathmatical model used in operation management but in economics it is used to determine optimum inventory levels .. It is characterized by fixed prices and uncertain demand for perishable items...
Perishable goods r those goods which get spoil in a short period...
This model affect to their supply and demand...
For clearing the stock seller reduce prices for these goods these increase the supply and demand also...
So people get good in low price and seller clear their stocks..
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