Question
please answer both correctly thank you so much A store uses the newsvendor model to manage its inventory. Demand for its product is normally distributed
please answer both correctly thank you so much
A store uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is the optimal quantity the store should order of its product?
A. 725
B. 702
Newsvendor model is used under the following conditions:
A. When placing order to meet uncertain demand
B. When placing orders in presence to fixed ordering cost
C. When placing orders to smoothen production
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