Sam's Hardware Store Has an Order Policy of Ordering 12

question 11

Essay

Sam's hardware store has an order policy of ordering 12 gallons of a specific primer whenever 7 gallons are on hand (unless there's already an ordered delivery due).The store would like to see how well their policy works.Assume that beginning inventory in period 1 is 10 gallons and that orders are placed at the end of the week to be received one week later.(In other words,if an order is placed at the end of week one,it is available at the beginning of week 3. )Assume that if inventory is not on hand,it will result in a lost sale.The weekly demand distribution obtained from past sales is found in the table below.Also,use the random numbers that are provided and simulate 10 weeks' worth of sales.How many sales are lost?
Random numbers for sales: 37,60,79,21,85,71,48,39,31,35

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Definitions:

Standard Form Contract

A contract with fixed terms prepared by a business.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Binding

Having the effect of a legal obligation that must be adhered to; able to enforce a legal obligation.

Postbox Rule

A legal principle that specifies the exact moment a contract is considered accepted, which is when an acceptance is communicated, even if it has not yet been received by the offeror.