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The owner of a ski apparel store in Winter Park, Co must make a decision in July regarding the number of ski jackets to order for 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 Poison Distribution with an average rate of 80. The store owner can order jackets in lot sizes of 10 units.
To answer the following question(s) create a model in a spreadsheet of the situation.
a. How many jackets should the store owner order if she wants to maximize her expected profit?
b. What are the best-case and worst-case outcomes the owner may face on this product if she implements you suggestion?
c. How likely is it that the store owner will make at least $7,000 if she implements your suggestion?
d. How likely is it that the store owner will make between $6,000 and $7,000 if she implements your suggestion?
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