Question

Question 9) Suppose a company uses the newsvendor model to manage its inventory and faces normally distributed demand. The company decides to order a quantity that exactly equals its mean demand forecast. Which of the following is true regarding this company's performance measures? AO The probability of serving all the demand is 50% B) O Expected lost sales is 50% of mean demand CO Expected sales is equal to mean demand D) Expected left over inventory is 0​

Answer 1

Answer:

ao expected lost sales is 50 demand