Important Instruction: Please use 10,000 replications in your simulation. Grading Rubric: Score Description 3 Logical fl

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Important Instruction:
Please use 10,000 replications in your simulation.
Grading Rubric:
Score
Description
3
Logical flow for descriptive model, correct random variables, and correct solutions
2.5
Logical flow for descriptive model, correct random variables, but incorrect solutions or
Gaps in descriptive model logic, incorrect random variable(s), but correct solutions
2
Gaps in descriptive model logic or incorrect random variable(s) and incorrect solutions
1.5 or lower
Formulations imply large gap in understanding
Michelle Abrams runs a specialty clothing store that sells collegiate sports apparel. One of her primary business opportunities involves selling custom screen printed sweatshirts for college football bowl games. She is trying to determine how many sweatshirts to produce for the upcoming Tangerine Bowl game. During the month before the game, Michelle plans to sell sweatshirts for $30 each. At this price, she believes the demand for sweatshirts will be normally distributed with mean 7,000 and standard deviation 1,500 (with no negative values). During the month after the game, Michelle plans to sell any remaining sweatshirts for $12 each. At this price, she believes the demand for sweatshirts will be discrete uniformly distributed with a minimum demand of 300, and a maximum demand of 1,000. Two months after the game, Michelle plans to sell any remaining sweatshirts to a surplus store that has agreed to buy up to 1,500 sweatshirts for a price of $3 per shirt. Michelle can order custom screen printed sweatshirts for $10 per sweatshirt in lot sizes of 1000.