Degree Name

MS (Master of Science)

Program

Mathematical Sciences

Date of Award

8-2016

Committee Chair or Co-Chairs

Jeff Knisley

Committee Members

Ariel Cintron-Arias, Robert Price Jr.

Abstract

Newsvendor Models with Monte Carlo Sampling by Ijeoma Winifred Ekwegh The newsvendor model is used in solving inventory problems in which demand is random. In this thesis, we will focus on a method of using Monte Carlo sampling to estimate the order quantity that will either maximizes revenue or minimizes cost given that demand is uncertain. Given data, the Monte Carlo approach will be used in sampling data over scenarios and also estimating the probability density function. A bootstrapping process yields an empirical distribution for the order quantity that will maximize the expected profit. Finally, this method will be used on a newsvendor example to show that it works in maximizing profit.

Document Type

Thesis - unrestricted

Copyright

Copyright by the Ijeoma Winifred Ekwegh

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