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

question 29

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:

Overeating

The consumption of food in quantities significantly larger than what is required for basic nutritional needs, often leading to discomfort, health issues, or obesity.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors such as vomiting.

Overweight

A condition where an individual has more body weight than is considered normal or healthy for their height.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a manual published by the American Psychiatric Association that classifies and provides criteria for diagnosing mental disorders.