The newsvendor model is a classic approach to determining how to set appropriate inventory levels for products whose value is perishable. While the newsvendor analysis does not yield the richness of data found in a simulation-based model, newsvendor analysis provides a relatively simple way to determine inventory levels.
Thompson, G. M., and R. Verma. 2003. Computer simulation in hospitality teaching, practice and research. Cornell Hotel and Restaurant Administration Quarterly44 (2): 85-93.
