An online retailer facing uncertain demand has made a quantity decision for a product using the Newsvendor Model based on an initial demand forecast. The products underage cost is greater than the overage cost (i.e., CU > CO), and the demand is normally distributed. It was determined that the profit-maximizing order quantity was 2500. Later, the firm discovered that the initial forecast had underestimated the average demand by a factor of two: according to a revised demand forecast, the average demand is twice that of the initial forecast. All other parameters, including underage and overage costs, standard deviation of the normally distributed demand, remain unchanged in the revised forecast. Based on this new information, the firm has to re-calculate its optimal quantity that maximizes expected profit.

Which of the following is true? a) The new optimal quantity is less than 2500. b) The new optimal quantity is between 2500 and 5000. c) The new optimal quantity is between 5000 and 7500. d) The new optimal quantity is greater than 7500. e) There is not enough information to answer this question.