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

question 40

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 (e.g., if an order is placed at the end of month 1, it will be available at the beginning of month 3). 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:

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Awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."

Cognitive Abilities

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The process of identifying a challenge or obstacle and developing methods or strategies to overcome or address it.

Practical Intelligence

A type of intelligence that relates to the ability to solve everyday problems through the application of knowledge and experience.