Problem 3. 3a. In the Newsvendor problem that we discussed in the lectures, if the cost of excess (i.e, the holding cost) increases, then the critical fractile strictly increases. A. True B. False 3b. In the problem above, if the shortage cost decreases, then the optimal inventory level weakly increases. A. True B. False 3c. When the demand distribution function is continuous, the Newsvendor model can only be implemented in case when the demand follows Normal distribution. A. True B. False 3d. In the Economic Order Quantity model, if the demand rate increases, then the optimal order quantity decreases A. True B. False

Problem 3. 3a. In the Newsvendor problem that we discussed in the lectures, if the cost of excess (i.e, the holding cost) increases, then the critical fractile strictly increases. A. True B. False 3b. In the problem above, if the shortage cost decreases, then the optimal inventory level weakly increases. A. True B. False 3c. When the demand distribution function is continuous, the Newsvendor model can only be implemented in case when the demand follows Normal distribution. A. True B. False 3d. In the Economic Order Quantity model, if the demand rate increases, then the optimal order quantity decreases A. True B. False

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4WNG

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