When is your service level greater than 70% in a newsvendor model with normally distributed demand?

When Overage Cost>Underage Cost

When Overage Cost

When Overage Cost=Underage Cost

(2 point) The purpose of safety stock is to

Protect the firm from a sudden decrease in demand

Replace failed units with good ones

Eliminate the possibility of a stock-out

Control the likelihood of a stock-out due to the variability of demand during lead time

Eliminate the likelihood of a stock-out due to erroneous inventory tally

(2 point) Under the assumptions of EOQ model, if the optimal cost (fixed ordering cost + holding cost) is $10,000, then the holding cost part is $5,000.

True

False