Choose the best answer. O'Neill is looking at a product which fits the criteria for using the Newsvendor model,and O'Neill is looking to maximize profits. Let's assume the overage cost, mean, and standard deviation for a given product remain the same. As the underage cost for this product increases....

a. the optimal quantity to buy increases.

b. the optimal quantity to buy decreases.

c. the optimal quantity to buy remains the same.

d. the answer depends on whether the critical ratio is above or below 0.5