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In a newsvendor model with normally distributed demand, suppose the firm increases the order quantity, which of the following would be true The expected leftovers

In a newsvendor model with normally distributed demand, suppose the firm increases the order quantity, which of the following would be true

  • The expected leftovers decreases
  • The expected lost sales increases
  • The expected profits would not be affected by the change
  • Both expected leftovers and expected sales increases
  • None of the above

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