# Established the mathematical foundation with the Newsvendor model
## Foundation: Mathematical Metaphor
**Core Contribution:** Introduced the Newsvendor model as a framework for entrepreneurial decision-making
**Key Concepts:**
* Underage costs (Cu) vs. Overage costs (Co)
* Critical ratio: r = Cu/(Cu+Co)
* Stakeholder sequencing problem
**Mechanism:** Translated abstract stakeholder prioritization into concrete optimization problem
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## Context from Evolution
May established the mathematical foundation that would evolve through June and July:
- **May (peach)**: Newsvendor model foundation
- **June (blue)**: Added strategic complexity → [[2025-06]]
- **July (green)**: Final synthesis with "Promise Vendor" → [[2025-07]]
### Key Insights
🔄 **Progressive Refinement**: This month established the mathematical foundation that June would add strategic complexity to, and July would synthesize into the final "Promise Vendor" concept.
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*Source: Extracted from [[2025]] using [cld](https://claude.ai/chat/7fee518c-b641-469f-9514-374748a8a350)*