4. Consider the newsvendor model with normal demand. Suppose demand becomes more variable. All else being equal (i.e., keeping everything else constant), the optimal order quantity will: a. Increase b. Decrease c. It depends d. Remain the same 5. Consider a newsvendor that uses the Newsvendor Model to decide how many copies of newspaper to stock each morning while facing a daily demand that is Normal (mean = 100, std. dev. = 30). The price, cost, and salvage value of a newspaper are p = $5, c = $1, and s = $0.25, respectively. The supplier has decided to charge the newsvendor a daily fixed ordering cost of $20 that is independent of order size. Because of this additional fixed ordering cost, the newsvendor's optimal order quantity will: a. Increase b. Decrease c. It depends d. Remain the same 6. Consider a firm that orders inventory according to a base-stock policy. Suppose that the firm outsources its supply from Africa, making the lead time grow from L to 4L. How does this longer lead time affect the safety stock? (Assume that the optimal z* statistic is positive.) a. The safety stock decreases by one half. b. The safety stock doubles. c. The safety stock remains the same. d. The safety stock increases by four times.