1. Newsvendor Model

You are in responsable for managing the procurement of three key products of your company´s retail´s stores. The Information for the next year projections is:

You are asked to:

• Determine if the company needs to overstock or understock Product A

• Determine if the company needs to overstock or understock Product B

• Determine if the company needs to overstock or understock Product C

• Based on your suggestion above, determine how many units to order for producto A

• Based on your suggestion above, determine how many units to order for producto B

• Based on your suggestion above, determine how many units to order for producto C