consider two products, a and b, that have identical cost, retail price, and demand parameters, and the same short selling season (the summer months from may through august). the newsvendor model is used to manage inventory for both products. product a will be re-offered next summer, so any leftovers this year can be carried over to the next year, while incurring a holding cost on each unit left over equal to 25% of the product's cost. product b is to be discontinued at the end of the season this year, and the leftovers will be salvaged at 75% of the cost. how do the optimal ordering quantities for these products compare?

A product is referred to as final or finished goods distributed in the market to serve the customers. This product can be both goods and services in which goods are tangible and services are intangible.

In the case, it is explained that Both products' inventories are controlled using the newsvendor concept. Product A will be re-offered next summer, allowing any unused units from this year to be carried over to the following year with a holding cost of 25% of the product's cost for each unit left over.

This year, the remaining stock of product B will be salvaged at a cost of 75% and no longer sold due to discontinuation which states that product a performed better.

Learn more about the Product, here:

https://brainly.com/question/22852400

#SPJ1