How many jackets should the store owner order

Reference no: EM13179215

the owner of a ski apparel shop in Winter Park, Colorado must make a decision in July regarding the number of ski jackets to order the following ski season. Each ski jacket costs $54 each and can be sold during the ski season for $145. Any unsold jackets at the end of the season are sold for $45. The demand for jackets is expected to follow a Poisson distribution with an average rate of 80. The store owner can order jackets in lot sizes of 10 units. How many jackets should the store owner order if she wants to maximize the expected profit?

Reference no: EM13179215

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