Question: Consider a Base - Stock model with random and normally distributed demand. If the marginal cost of excess is greater than the marginal cost of

Consider a Base-Stock model with random and normallydistributed demand. If the marginal cost of excess is greater than themarginal cost of shortage, when demand variance increases
Group of answer choices
the optimal safety stock level increases
the optimal base-stock and the optimal safety stock levels both decrease
the optimal base-stock and the optimal safety stock levels both increase
the optimal safety stock level decreases
the optimal base-stock level increases
the optimal base-stock level decreases

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