Refer to Model 7. Build a deterministic model, then use Solver to solve for the optimal order quantity that maximizes profit. According to your Solver result, what is the maximum profit? Format: $1,000.00

AutoSave OFF BESU- model 7 - Saved to my Mac Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments Calibri Insert v v 12 ' = = ab Wrap Text General 28-Ou s Delete Paste 00 B I U ar Av Merge & Center v % , Conditional Format Cell Formatting as Table Styles V Ideas Sort & Filter Sensitivity Format v Find & Select V B13 X Vfx A D E F G H K L . N 0 P Q R S T V W Y Z 1 Background: 2 3 In August, Walton Bookstore must decide how many of next year's calendars to order. Each calendar costs the 4 bookstore $7.50 and sells for $10. After January 1, all unsold calendars will be returned to the publisher for a 5 refund of $2.50 per calendar. Walton believes that the number of calendars it can sell by January 1 follows a 6 normal distribution with mean 100 and standard deviation 20. 7 8 Calculate the optimal order quatity using Solver in a deterministic model, assuming the demand is equal to its 9 average, 100; then build a simulation model with 500 iterations using random demands, then use a data table to 10 find the range of the best order quantity that maximizes average profit. 49 11 12 Cost data 13 Unit cost 14 Unit price 15 Unit refund 16 2 17 Demand distribution 18 Mean 19 Stdev 20 21 Decision variable 22 Order quantity 23 24 Deterministic model 25 Demand 26 Revenue 27 Ordering Cost 28 Refund 29 Profit 30 31 Simulation model 32 33 Average profit 34 Data Table to find best order quantity 35 Iteration Demand Demand Revenue Ordering Cost Refund Profit Order Quantity Avg Profit 36 37 38 39 40 41 Model 7 Sheet1 + Enter + 100%