Convert newsvendor parameters to kappa and alpha

Convert newsvendor parameters to kappa and alpha

Usage

stdize_news_params(ax, ay = NULL, a_minus, a_plus)

Arguments

ax

wholesale cost per unit stocked.

ay

unused; retained for symmetry with the source parameterization.

a_minus

cost of revenue lost per unit of unmet demand.

a_plus

cost incurred per unit left over.

Value

A data frame with columns kappa and alpha, suitable for use inside dplyr::mutate().

Examples

stdize_news_params(ax = 4, a_minus = 7, a_plus = 1)
#>   kappa alpha
#> 1     8 0.375