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You face a newsvendor problem with a discrete demand distribution. Let Demand = x and F ( x ) Demand x ) , i .

You face a newsvendor problem with a discrete demand distribution. Let Demand =x and F(x)
Demand x), i.e.,F(x)=i=1xpi. Let SL**=MBMB+MC be the optimal service level. Suppose there
exist a quantity Q such that F(Q)=SL**. Show that you are indifferent between stocking Q and Q+1.
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