Consider two products A and B that have identical cost, retail price and demand parameters and the same short selling season. The newsvendor model is used to manage inventory for both products.$$Product A is to be discontinued at the end of the season this year, and the leftovers will be salvaged at $70\%$ of the cost.$$Product B will be re$-$offered next summer, so any leftovers this year can be carried over to the next year while incurring a holding cost on each leftover unit equal to $20\%$ of the product's cost. How do the stocking quantities for these products compare?

Multiple Choice

Stocking quantity of product B is higher.

Stocking quantity of product A is higher.

The answer cannot be determined from the data provided.

Stocking quantities are equal.