Which of the following is NOT true about the newsvendor model (Circle ALL statements that are NOT TRUE) i. If the unit cost of the item increases then the optimal quantity decreases ii. The stockout penalty does not affect the quantity ordered iii. The total cost is the unit cost multiplied by the quantity ordered iv. If the salvage value increases the quantity ordered decreases v. If the standard deviation of the demand increases, then the quantity decreases
Which of the following is NOT true about the newsvendor model (Circle ALL statements that are NOT TRUE) i. If the unit cost of the item increases then the optimal quantity decreases ii. The stockout penalty does not affect the quantity ordered iii. The total cost is the unit cost multiplied by the quantity ordered iv. If the salvage value increases the quantity ordered decreases v. If the standard deviation of the demand increases, then the quantity decreases
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
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