Operations
How much should you order when demand is uncertain?
Stock out and you lose the sale; over-order and it costs you. This classic newsvendor template shows your profit distribution at a given order quantity — then optimizes the quantity that maximizes expected profit.
Get this in Google Sheets →The model
You sell the lesser of demand and your order, salvage the leftovers, and pay for everything you ordered. Demand is the uncertain input.
| Unit cost | $0.75 |
| Sell price | $2.50 |
| Salvage value | $0.10 |
| Order quantity | 120 |
| Demand | 60 – 100 – 150 (uncertain) |
| Profit | → simulated |
What Sortia tells you
Profit distribution at an order of 120 units:
P5$98
Median$168
P95$210
Mean$165
P5 · $98median · $168P95 · $210
At this order quantity, profit ranges from $98 to $210 depending on demand. Switch Sortia to Optimize mode and it searches order quantities to find the one that maximizes expected profit under this exact uncertainty — the real decision, made for you.
Try it in your own sheet
- Open Sortia in Google Sheets and choose Start from a template.
- Pick Inventory Order Quantity (Newsvendor) — the model loads with the inputs filled in.
- Change the assumptions to fit your situation and press Run.