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 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.

Monthly sales Probability
3 .20
4 .30
5 .20
6 .20
7 .10

Random numbers for sales: 10, 24, 03, 32, 23, 59, 95, 34, 34, 51, 08, 48

Monthly sales Probability RN
assignment
3 .20 01-20
4 .30 21-50
5 .20 51-70
6 .20 71-90
7 .10 91-00

Month Order received Beginning inventory RN Sales Ending inventory Order? Lost sales
1 8 10 3 5 Y
2 5 24 4 1
3 10 11 03 3 8
4 8 32 4 4 Y
5 4 23 4 0
6 10 10 59 5 5 Y
7 5 95 7 0 2
8 10 10 34 4 6 Y
9 6 34 4 2
10 10 12 51 5 7
11 7 08 3 4 Y
12 4 48 4 0

Over the 12 months 2 sales are lost.