COMPUTER SIMULATION OF NEWSBOY PROBLEM

By using the computer simulation method, the newsboy problem was studied, and the amount of subscription which makes the expected loss of the newsboy be the smallest was worked out.A curve representing the relation between the loss and the subscription volume was drawn. The research results indicated that the experimental value of simulation is consistent with its theory value. This model can also be used for investigation of the strategy of the order goods and the stock in enterprise.