The salon manager notices that if there is one customer waiting, the arriving customer has a probability of 0.6 of leaving, and if there are two customers waiting, the arriving customer has a probability of 0.9 of leaving. The manager also calculates the profit if she hires a new manicurist and if the new manicurist is busy for more than half of the time. Calculate the probability that appointing a new manicurist will generate a profit. The salon is open for 10–18 hours for 5 days a week.

• • F.20 Dumoor Appliance Center sells and services several brands of major appliances. Past sales for a particular model of refrigerator have resulted in the following probability distribution for demand:

The lead-time in weeks is described by the following distribution:

Based on cost considerations as well as storage space, the company has decided to order 10 of these each time an order is placed. The holding cost is $1 per week for each unit that is left in inventory at the end of the week. The stockout cost has been set at $40 per stockout. The company has decided to place an order whenever there are only two refrigerators left at the end of the week. Simulate 10 weeks of operation for Dumoor Appliance, assuming that there are currently 5 units in inventory.
Determine what the weekly stockout cost and weekly holding cost would be for the problem. Use the random numbers in the first column of Table F.4 for demand and the second column for lead time.

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DEMAND PER WEEK PROBABILITY 0 1 2 3 4 0.20 0.40 0.20 0.15 0.05