DSI Ardavan 2

This talk is composed of several sections. We start from three well-known continuous probability distributions, how to generate them. We then focus on Normal distribution and assume it represents demand for a product. By applying DataTable on 1000 lines of simulated data, we provide intuition how t identity the optimal service level and then present the theoretical formula. We cover the news vendor-problem both in simulation world and theoretical domain. We then compute overstock cost, under-stock cost, and fill rate. We show retailer profit, supplier profit, and supply chain profit. We show the value of information and value of collaboration in maximizing the total supply chain profit.