Simkin's Hardware simulated an inventory-ordering policy for Ace electric drills that involved an order quantity of 10 drills, with a reorder point of 5.

This first attempt to develop a cost- effective ordering strategy was illustrated in Table F.10 of Example F3 (on p. 826). The brief simulation resulted in a total daily inven- tory cost of $6.65 in Example F4. Simkin would now like to compare this strategy to one in which he orders 12 drills, with a reorder point of 6.

Conduct a 10-day sim- ulation (using random numbers from the right hand column of Table F.4, starting with 07, and using a beginning inventory = 12). Discuss the cost implications. P ...13 Every home football game for the last 8 years at Eastern State University has been sold out. The revenues from ticket sales are significant, but the sale of food, beverages, and souvenirs has contributed greatly to the overall profitability of the football pro- gram. One particular souvenir is the football program for each game. The number of programs sold at each game is described by the probability distribution given in the table: