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

question 88

Essay

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

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Definitions:

Psychological Factors

Refer to mental and emotional aspects that influence an individual's behavior and wellbeing.

Physical Factors

Environmental, biological, or chemical elements that can influence the physical condition and health of individuals.

Conventional Medicine

A system of medicine based on the diagnosis, treatment, and prevention of disease using drugs, surgery, and other interventions; also known as Western medicine.

Complementary Medicine

A set of health care practices that are used together with or in addition to standard medical treatments.