The newsboy with known demand and uncertain replenishment: Applications to quality control and container fill

Consider a newsboy problem with known demand and random replenishment. The distribution of the replenishment quantity is determined by a location-scale parameter, (@m, @d), which can be controlled. The usual expected cost function includes a separate term associated with the choice of @d. The asymptotic behavior of the optimal parameter values, as functions of the holding and shortage costs, is examined.