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Suppose that demand is uncertain following a Normal distribution. Consider the newsvendor model and suppose that given the cost of underage and overage, the service
Suppose that demand is uncertain following a Normal distribution. Consider the newsvendor model and suppose that given the cost of underage and overage, the service level is 0.55. Which of the following statements is true if the optimal quantity is ordered? The expected sales is larger than the expected demand. The expected sales is exactly equal to expected demand. The expected sales is less than expected demand. The expected sales could be less than, equal to or greater than expected demand
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