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Scenario: Calendar Kiosk must decide how many of next year's Nature Calendars to order by September. The calendars cost $ 6 . 5 0 and

Scenario: Calendar Kiosk must decide how many of next year's Nature Calendars to order by September. The calendars cost $6.50 and are sold for $12. Expected sales of the calendar based upon past years data is approximately 245 calendars. Assume that demand can be approximated by a Poisson distribution. Order quantities are in units of 20(i.e. there are 20 calendars per box). At the end of January, unsold boxes (i.e. unopened) of calendars may be returned at the discounted refund of $2 per calendar ($40.00 per box). To minimize the risk of stock-outs, Calendar Kiosk typically orders 280 of the calendars each year. Ignore discounting.
If the goal of the kiosk is to maximize expected profit, determine the optimal order quantity (remember that they can only order in quantities of 20).

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