Video 11: An Application of Newsvendor Problem to Determining the Order Size at a Local Coffee Producer

This video describes the newsvendor problem, goes through the derivation of the critical factor that is used to determine the order size. The video concludes with an example problem that determines the expected demand, order size,and the expected profit associated with this order size. Please read the problem description before watching this video. After watching it, please go to the survey form below, and rate this video and leave your comments.