Julie's Diamond Boutique is very concerned with its order policies related to one-carat diamond solitaires. Their current policy is to order 10 diamonds whenever their inventory reaches 6 diamonds (unless there is already an ordered delivery due). Currently there are 8 diamonds on hand. Orders are placed at the end of the month and take one month to arrive . The following distribution of monthly sales has been developed using historical sales. If Julie's does not have a diamond on hand, it will result in a lost sale. Use the following random numbers to determine the number of lost sales of one-carat solitaires at Julie's over 12 months.
$$\begin{array} { | c | c | }
\hline \text { Monthly sales } & \text { Probability } \
\hline 3 & .20 \
\hline 4 & .30 \
\hline 5 & .20 \
\hline 6 & .20 \
\hline 7 & .10 \
\hline
\end{array}$$ Random numbers for sales: 10, 24, 03, 32, 23, 59, 95, 34, 34, 51, 08, 48

Question

Julie's Diamond Boutique is very concerned with its order policies related to one-carat diamond solitaires. Their current policy is to order 10 diamonds whenever their inventory reaches 6 diamonds (unless there is already an ordered delivery due). Currently there are 8 diamonds on hand. Orders are placed at the end of the month and take one month to arrive . The following distribution of monthly sales has been developed using historical sales. If Julie's does not have a diamond on hand, it will result in a lost sale. Use the following random numbers to determine the number of lost sales of one-carat solitaires at Julie's over 12 months.
 $$\begin{array} { | c | c | } 
\hline \text { Monthly sales } & \text { Probability } \
\hline 3 & .20 \
\hline 4 & .30 \
\hline 5 & .20 \
\hline 6 & .20 \
\hline 7 & .10 \
\hline
\end{array}$$ Random numbers for sales: 10, 24, 03, 32, 23, 59, 95, 34, 34, 51, 08, 48

Quizplus · Accepted Answer

The Answer of Julie's Diamond Boutique is very concerned with its order policies related to one-carat diamond solitaires. Their current policy is to order 10 diamonds whenever their inventory reaches 6 diamonds (unless there is already an ordered delivery due). Currently there are 8 diamonds on hand. Orders are placed at the end of the month and take one month to arrive . The following distribution of monthly sales has been developed using historical sales. If Julie's does not have a diamond on hand, it will result in a lost sale. Use the following random numbers to determine the number of lost sales of one-carat solitaires at Julie's over 12 months.
 $$\begin{array} { | c | c | } 
\hline \text { Monthly sales } & \text { Probability } \
\hline 3 & .20 \
\hline 4 & .30 \
\hline 5 & .20 \
\hline 6 & .20 \
\hline 7 & .10 \
\hline
\end{array}$$ Random numbers for sales: 10, 24, 03, 32, 23, 59, 95, 34, 34, 51, 08, 48

Julie's Diamond Boutique Is Very Concerned with Its Order Policies