Sam's Hardware Store Has an Order Policy of Ordering 11

question 91

Essay

Sam's hardware store has an order policy of ordering 11 liters of a specific primer whenever 5 liters 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 12 units, 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 5 weeks worth of sales. How many sales are lost?
$$\begin{array} { | c | c | } \hline \text { Weekly sales } & \text { Probability } \\\hline 3 & .25 \\\hline 4 & .25 \\\hline 5 & .30 \\\hline 6 & .20 \\\hline\end{array}$$ Random numbers for sales: 87, 64, 79, 21, 85

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Definitions:

Beck Et Al. (1962)

Refers to a seminal research study by psychologist Aaron Beck that contributed to the understanding of depression, introducing the concept of negative cognitive bias.

Inter-Rater Agreement

The extent to which two or more raters or judges agree on evaluations or assessments.

Discontinuous Approach

A viewpoint in developmental psychology that posits development occurs in distinct stages or steps rather than gradually.

Categorical Classification

A method of organizing items into categories based on shared characteristics, often used in the classification of mental disorders.