-
Notifications
You must be signed in to change notification settings - Fork 93
New issue
Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.
By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.
Already on GitHub? Sign in to your account
purchase_cost calculation #26
Comments
Hey @ChrisKahrs, thanks for pointing this out! I'd love a PR if you can manage it. |
Sign up for free
to join this conversation on GitHub.
Already have an account?
Sign in to comment
In the NewsVendor.py file... I don't think "excess_inventory" should be in the calculation for "purchase_cost". It is handled in the "holding_cost" section and it messes up the calculations for everything else in purchase costs for new items. Am I incorrect? I took it out and everything now seems to be working ok. I will do a fix and pr if you believe this is also correct. Thanks!
Line 84 (newsvendor.py)
excess_inventory = max(0, inv_on_hand - demand)
short_inventory = max(0, demand - inv_on_hand)
purchase_cost = excess_inventory * self.cost * order_qty *
self.gamma ** self.lead_time
holding_cost = excess_inventory * self.h
lost_sales_penalty = short_inventory * self.k
The text was updated successfully, but these errors were encountered: