Question: In a certain newsvendor model featuring normal demand with mean , and standard deviation > 0, the resulting optimal service level is 0.265. Which one

In a certain newsvendor model featuring normal demand with mean , and standard deviation > 0, the resulting optimal service level is 0.265. Which one of the following statements is consequently true?

(a) The optimal order quantity Q? is less than the demand standard deviation .

(b) The optimal order quantity Q? is greater than the demand mean .

(d) The optimal order quantity Q? is less than the demand mean .

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