How many spaceships should abc stock

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The company ABC sells luxury spaceships. According to their historical sales, customers buy spaceships at an average rate of 5 per week. Spaceships are expensive for them to stock but, on the other hand, they hate to run out of spaceships and turn away a rich customer. Once a week, ABC restocks spaceships for the coming week. They want to have the minimum number of spaceships such that there is less than a 0.1% probability that they have more buying customers than spaceships during the next week. They cannot figure out how many spaceships this should be and turn to you for advice. After asking some questions, you determine that arrivals of paying customers seem to be independent of each other and decide that a Poisson distribution would be a good model.

Given this decision, how many spaceships should ABC stock for the coming week?

Reference no: EM132399764

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