1. Peter Miller, the general manager of Lowell Software, must decide when to release the new version of Lowell's spreadsheet package, Lazyspread 2.0. Development of Lazyspread 2.0 is complete; however, the compact discs and user manuals have not yet been produced. The product can be shipped starting July 1, 2016.
2. The major problem is that Lowell has overstocked the previous version of its spreadsheet package, Lazyspread 1.0. Miller knows that once Lazyspread 2.0 is introduced, Lowell will not be able to sell any more units of Lazyspread 1.0. Rather than just throwing away the inventory of Lazyspread 1.0, Miller is wondering if it might be better to continue to sell Lazyspread 1.0 for the next three months and introduce Lazyspread 2.0 on October 1, 2016, when the inventory of Lazyspread 1.0 will be sold out.