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

question 19

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 Diamond Boutique 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 the store over 12 months.
Random numbers for sales: 10,24,03,32,23,59,95,34,34,51,08,48

Understand the shift in cost curves due to government taxes on producers.

Understand how marginal cost interacts with average total cost, average fixed cost, and average variable cost.

Comprehend the concept of economies and diseconomies of scale in production.

Understand the law of diminishing returns and its implications for production.

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Definitions:

Character Displacement

The tendency for two similar species to diverge (become more different) in areas where their ranges overlap; reduces interspecific competition.

Limiting Resource

An environmental resource that because it is scarce or unfavorable tends to restrict the ecological niche of an organism.

Genetic Mutations

Permanent alterations in the DNA sequence that makes up a gene, leading to variations in the phenotype of an organism, which can be beneficial, neutral, or harmful.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.