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Business, 16.07.2021 02:00 lex2678

A company uses the newsvendor model to manage its inventories and its demand is normally distributed. They order a quantity that equals the mean of its demand distribution. 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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