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Business, 21.12.2019 00:31 hallkayleel0lozgxtq

Acompany uses the newsvendor model to manage its inventories and faces normally distributed demand with a coefficients of variation=0.75. the company decides to order a quantity that exactly equals the mean of its demand forecast. which of the following is true regarding this company’s performance measures?
a. there is a 0.50 probability that there is enough inventories to serve all demand.
b. expected inventory equals 50% of the mean of the demand forecast.
c. the stockout probability is 25%

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