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

question 92

Essay

Sam's hardware store has an order policy of ordering 12 liters of a specific primer whenever 7 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 15 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?
$$\begin{array} { | c | c | } \hline \text { Weekly sales } & \text { Probability } \\\hline 3 & .20 \\\hline 4 & .30 \\\hline 5 & .30 \\\hline 6 & .20 \\\hline\end{array}$$ Random numbers for sales: 37, 60, 79, 21, 85

---

Definitions:

Bodhi Tree

The sacred fig tree under which Siddhartha Gautama, the Buddha, is said to have attained enlightenment.

Buddhist Art

Buddhist Art covers the visual artistic practices inspired by Buddhism, including statues, paintings, and architecture that depict Buddhas, bodhisattvas, and narratives from Buddhist texts, prevalent across Asia.

Axis Mundi

Latin, “axis of the world.” In South Asia, a tall pillar planted deep in the ground, connecting earth and sky.

Ananda Temple

A Buddhist temple in Bagan, Myanmar, known for its grand architecture and four standing Buddha statues, each facing a cardinal direction.