Saved

Only when the demand data is not censored, we can use the empirical distribution to estimate the demand distribution

Question 1 options:

	Yes
	No

Question 2 (1 point)

Saved

In the newsvendor model

Question 2 options:

	the expected lost sales increase when the in-stock rate decreases
	the leftover inventory increases when the in-stock rate decreases
	the expected sales increase when the order quantity decreases
	the leftover inventory increases when the probability of understock increases

Question 3 (1 point)

Which of the following relationship is NOT true in the newsvendor model

Question 3 options:

	Order quantity = leftover inventory + sales
	Expected leftover inventory = expected lost sales
	Expected mis-match cost + expected profit = expected maximum profit
	Demand = sales + lost sales

Question 4 (1 point)

Based on the lecture, which of the following statement is true

Question 4 options:

	The underage amount in the banking problem is the amount of cash untouched during the day
	The overage amount in the party planning problem is the number of empty seats due to guest no-show
	The underage cost in the banking problem involves the per unit cash handling cost
	The overage occurs the surgery scheduling problem when the surgery time is longer than the scheduled time

Question 5 (1 point)

When the order quantity increases in the newsvendor model

Question 5 options:

	The expected leftover inventory increases
	The expected maximum profit decreases
	The expected mismatch cost increases
	The expected leftover inventory decreases