dorsal/arxiv
View SchemaOptimal supply against fluctuating demand
| Authors | Nobuyuki Sakai, Hisanori Kudoh |
|---|---|
| Categories | |
| ArXiv ID | physics/0503214 |
| URL | https://arxiv.org/abs/physics/0503214 |
Abstract
Sornette et al. claimed that the optimal supply does not agree with the average demand, by analyzing a bakery model where a daily demand fluctuates with a uniform distribution. In this note, we extend the model to general probability distributions, and obtain the formula of the optimal supply for Gaussian distribution, which is more realistic. Our result is useful in a real market to earn the largest income on average.
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"date_created": "2026-03-02T18:00:56.982000Z",
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"abstract": "Sornette et al. claimed that the optimal supply does not agree with the\naverage demand, by analyzing a bakery model where a daily demand fluctuates\nwith a uniform distribution. In this note, we extend the model to general\nprobability distributions, and obtain the formula of the optimal supply for\nGaussian distribution, which is more realistic. Our result is useful in a real\nmarket to earn the largest income on average.",
"arxiv_id": "physics/0503214",
"authors": [
"Nobuyuki Sakai",
"Hisanori Kudoh"
],
"categories": [
"physics.soc-ph",
"q-fin.GN"
],
"title": "Optimal supply against fluctuating demand",
"url": "https://arxiv.org/abs/physics/0503214"
},
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