Product X has a higher standard deviation of demand, and therefore its optimal order quantity is greater given the same mean and critical ratio. Suppose the newsvendor model describes a firm's operations decision. Is it possible to have a positive stockout probability and positive expected leftover inventory? Choose the best answer.

o No. If there is leftover inventory, then a stockout doesn't occur. o No. If the stockout probability is positive, then expected inventory must be negative. o No. Actual demand can differ from sales. o Yes. A firm does not stock out and have leftover inventory at the same time, but the stockout probability can be positive even though there is positive expected leftover inventory. o Yes, as long as the underage cost is greater than the overage cost.