MS (Master of Science)
Date of Award
Committee Chair or Co-Chairs
Ariel Cintron-Arias, Robert Price Jr.
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.
Thesis - Open Access
Ekwegh, Ijeoma W., "Newsvendor Models With Monte Carlo Sampling" (2016). Electronic Theses and Dissertations. Paper 3125. https://dc.etsu.edu/etd/3125
Copyright by the Ijeoma Winifred Ekwegh
Applied Mathematics Commons, Applied Statistics Commons, Business Administration, Management, and Operations Commons, E-Commerce Commons, Fashion Business Commons, Finance and Financial Management Commons, Hospitality Administration and Management Commons, Operations and Supply Chain Management Commons, Other Mathematics Commons, Other Physical Sciences and Mathematics Commons, Probability Commons, Sales and Merchandising Commons, Statistical Methodology Commons, Statistical Models Commons