5) Store A 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 $20. Inventory is salvaged for $5. Which of the following statements is TRUE if Store A increases its in-stock probability from 98% to 99%? I B) Expected profit decreases. C) Order quantity remains unchanged. D) Expected profit increases. 6) Which of the following is a reason why queues will form even if capacity exceeds demand? A) Customers do not arrive in a consistent pattern. B) There is no variability in average capacity C) There is no variability in the arrival of customers, D) Customers arrive in a consistent pattern Store A 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 150. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $4. What is its expected profit if Store A's order quantity is 650 units? Use Table 13.4