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8 (8 points) Answer True or False to the following statements. If False, please correct it. [8 pts] a) If the understocking and overstocking costs
8 (8 points) Answer "True" or "False" to the following statements. If False, please correct it. [8 pts] a) If the understocking and overstocking costs per unit in the newsvendor problem both double, then the optimal quantity will not change. [2 pts] b) All else equal, a larger understocking cost per unit leads to a larger optimal newsvendor order quantity. [2 pts] c) When the demand variability increases, the optimal newsvendor order quantity must increase as well. [2 pts] d) If the shadow price is positive, then the left hand side must be equal to the right hand side at the corresponding constraint. [2 pts]
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