diff --git a/.ipynb_checkpoints/lab-python-functions-checkpoint.ipynb b/.ipynb_checkpoints/lab-python-functions-checkpoint.ipynb
new file mode 100644
index 0000000..44d337b
--- /dev/null
+++ b/.ipynb_checkpoints/lab-python-functions-checkpoint.ipynb
@@ -0,0 +1,69 @@
+{
+ "cells": [
+  {
+   "cell_type": "markdown",
+   "id": "25d7736c-ba17-4aff-b6bb-66eba20fbf4e",
+   "metadata": {},
+   "source": [
+    "# Lab | Functions"
+   ]
+  },
+  {
+   "cell_type": "markdown",
+   "id": "0c581062-8967-4d93-b06e-62833222f930",
+   "metadata": {
+    "tags": []
+   },
+   "source": [
+    "## Exercise: Managing Customer Orders with Functions\n",
+    "\n",
+    "In the previous exercise, you improved the code for managing customer orders by using loops and flow control. Now, let's take it a step further and refactor the code by introducing functions.\n",
+    "\n",
+    "Follow the steps below to complete the exercise:\n",
+    "\n",
+    "1. Define a function named `initialize_inventory` that takes `products` as a parameter. Inside the function, implement the code for initializing the inventory dictionary using a loop and user input.\n",
+    "\n",
+    "2. Define a function named `get_customer_orders` that takes no parameters. Inside the function, implement the code for prompting the user to enter the product names using a loop. The function should return the `customer_orders` set.\n",
+    "\n",
+    "3. Define a function named `update_inventory` that takes `customer_orders` and `inventory` as parameters. Inside the function, implement the code for updating the inventory dictionary based on the customer orders.\n",
+    "\n",
+    "4. Define a function named `calculate_order_statistics` that takes `customer_orders` and `products` as parameters. Inside the function, implement the code for calculating the order statistics (total products ordered, and percentage of unique products ordered). The function should return these values.\n",
+    "\n",
+    "5. Define a function named `print_order_statistics` that takes `order_statistics` as a parameter. Inside the function, implement the code for printing the order statistics.\n",
+    "\n",
+    "6. Define a function named `print_updated_inventory` that takes `inventory` as a parameter. Inside the function, implement the code for printing the updated inventory.\n",
+    "\n",
+    "7. Call the functions in the appropriate sequence to execute the program and manage customer orders.\n",
+    "\n",
+    "Hints for functions:\n",
+    "\n",
+    "- Consider the input parameters required for each function and their return values.\n",
+    "- Utilize function parameters and return values to transfer data between functions.\n",
+    "- Test your functions individually to ensure they work correctly.\n",
+    "\n",
+    "\n"
+   ]
+  }
+ ],
+ "metadata": {
+  "kernelspec": {
+   "display_name": "Python 3 (ipykernel)",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "codemirror_mode": {
+    "name": "ipython",
+    "version": 3
+   },
+   "file_extension": ".py",
+   "mimetype": "text/x-python",
+   "name": "python",
+   "nbconvert_exporter": "python",
+   "pygments_lexer": "ipython3",
+   "version": "3.9.13"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 5
+}
diff --git a/lab-python-functions.ipynb b/lab-python-functions.ipynb
index 44d337b..952766b 100644
--- a/lab-python-functions.ipynb
+++ b/lab-python-functions.ipynb
@@ -43,6 +43,271 @@
     "\n",
     "\n"
    ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 1,
+   "id": "7f033c69-8af8-4001-9f74-527dfac0fa28",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "def initialize_inventory(products):\n",
+    "    inventory = {}\n",
+    "    print(\"📦 Initialize Inventory\")\n",
+    "    for product in products:\n",
+    "        while True:\n",
+    "            try:\n",
+    "                qty = int(input(f\"Enter quantity for {product.title()}: \"))\n",
+    "                if qty >= 0:\n",
+    "                    inventory[product] = qty\n",
+    "                    break\n",
+    "                else:\n",
+    "                    print(\"Please enter a non-negative number.\")\n",
+    "            except ValueError:\n",
+    "                print(\"Invalid input. Please enter a number.\")\n",
+    "    return inventory\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 2,
+   "id": "eba4b58a-2fd4-448d-84ee-4a8b3fc7d3fc",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "def get_customer_orders():\n",
+    "    customer_orders = set()\n",
+    "    print(\"\\n🛒 Enter Customer Orders\")\n",
+    "    \n",
+    "    while True:\n",
+    "        product = input(\"Enter a product to order: \").lower().strip()\n",
+    "        customer_orders.add(product)\n",
+    "\n",
+    "        another = input(\"Do you want to add another product? (yes/no): \").strip().lower()\n",
+    "        if another != \"yes\":\n",
+    "            break\n",
+    "            \n",
+    "    return customer_orders\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 3,
+   "id": "26a38dc7-ab7b-4fa6-9522-3cd007999a12",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "def update_inventory(customer_orders, inventory):\n",
+    "    print(\"\\n🔄 Updating Inventory\")\n",
+    "    for product in customer_orders:\n",
+    "        if product in inventory and inventory[product] > 0:\n",
+    "            inventory[product] -= 1\n",
+    "            print(f\"{product.title()} inventory updated to {inventory[product]}\")\n",
+    "        elif product in inventory:\n",
+    "            print(f\"{product.title()} is out of stock!\")\n",
+    "        else:\n",
+    "            print(f\"{product.title()} not found in inventory.\")\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 4,
+   "id": "547fadd5-fe27-4679-aa59-ad0b70ba0d2e",
+   "metadata": {},
+   "outputs": [
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "📦 Initialize Inventory\n"
+     ]
+    },
+    {
+     "name": "stdin",
+     "output_type": "stream",
+     "text": [
+      "Enter quantity for Laptop:  5\n",
+      "Enter quantity for Phone:  9\n",
+      "Enter quantity for Headphones:  8\n",
+      "Enter quantity for Monitor:  10\n"
+     ]
+    },
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "\n",
+      "🛒 Enter Customer Orders\n"
+     ]
+    },
+    {
+     "name": "stdin",
+     "output_type": "stream",
+     "text": [
+      "Enter a product to order:  phone\n",
+      "Do you want to add another product? (yes/no):  yes\n",
+      "Enter a product to order:  laptop\n",
+      "Do you want to add another product? (yes/no):  yes\n",
+      "Enter a product to order:  monitor\n",
+      "Do you want to add another product? (yes/no):  no\n"
+     ]
+    },
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "\n",
+      "🔄 Updating Inventory\n",
+      "Laptop inventory updated to 4\n",
+      "Monitor inventory updated to 9\n",
+      "Phone inventory updated to 8\n",
+      "\n",
+      "✅ Final inventory state: {'laptop': 4, 'phone': 8, 'headphones': 8, 'monitor': 9}\n",
+      "✅ Products ordered: {'laptop', 'monitor', 'phone'}\n"
+     ]
+    }
+   ],
+   "source": [
+    "# Sample product list to use in initialization\n",
+    "products = [\"laptop\", \"phone\", \"headphones\", \"monitor\"]\n",
+    "\n",
+    "# Step 1: Initialize inventory by calling the function\n",
+    "inventory = initialize_inventory(products)\n",
+    "\n",
+    "# Step 2: Get customer orders\n",
+    "customer_orders = get_customer_orders()\n",
+    "\n",
+    "# Step 3: Update the inventory based on orders\n",
+    "update_inventory(customer_orders, inventory)\n",
+    "\n",
+    "# Just to check what's in the data so far:\n",
+    "print(\"\\n✅ Final inventory state:\", inventory)\n",
+    "print(\"✅ Products ordered:\", customer_orders)\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 5,
+   "id": "71f255d5-8d84-4b0c-a403-034d3ff4f169",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "def calculate_order_statistics(customer_orders, products):\n",
+    "    total_ordered = len(customer_orders)\n",
+    "    unique_percentage = (total_ordered / len(products)) * 100\n",
+    "    return total_ordered, unique_percentage\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 6,
+   "id": "681ff86e-85e5-48aa-a274-2fa89dda03b6",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "def print_order_statistics(order_stats):\n",
+    "    total_ordered, unique_percentage = order_stats\n",
+    "    print(\"\\n📊 Order Statistics\")\n",
+    "    print(f\"Total unique products ordered: {total_ordered}\")\n",
+    "    print(f\"Percentage of catalog ordered: {unique_percentage:.2f}%\")\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 7,
+   "id": "e0ce0073-677f-491d-b6d9-119ff6942b85",
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "def print_updated_inventory(inventory):\n",
+    "    print(\"\\n📦 Final Inventory\")\n",
+    "    for product, qty in inventory.items():\n",
+    "        print(f\"{product.title()}: {qty} in stock\")\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 8,
+   "id": "a1b5165c-1151-4e1b-bae4-c1aa6cf50cff",
+   "metadata": {},
+   "outputs": [
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "📦 Initialize Inventory\n"
+     ]
+    },
+    {
+     "name": "stdin",
+     "output_type": "stream",
+     "text": [
+      "Enter quantity for Laptop:  5\n",
+      "Enter quantity for Phone:  9\n",
+      "Enter quantity for Headphones:  8\n",
+      "Enter quantity for Monitor:  10\n"
+     ]
+    },
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "\n",
+      "🛒 Enter Customer Orders\n"
+     ]
+    },
+    {
+     "name": "stdin",
+     "output_type": "stream",
+     "text": [
+      "Enter a product to order:  laptop\n",
+      "Do you want to add another product? (yes/no):  phone\n"
+     ]
+    },
+    {
+     "name": "stdout",
+     "output_type": "stream",
+     "text": [
+      "\n",
+      "🔄 Updating Inventory\n",
+      "Laptop inventory updated to 4\n",
+      "\n",
+      "📊 Order Statistics\n",
+      "Total unique products ordered: 1\n",
+      "Percentage of catalog ordered: 25.00%\n",
+      "\n",
+      "📦 Final Inventory\n",
+      "Laptop: 4 in stock\n",
+      "Phone: 9 in stock\n",
+      "Headphones: 8 in stock\n",
+      "Monitor: 10 in stock\n"
+     ]
+    }
+   ],
+   "source": [
+    "##### Product catalog\n",
+    "products = [\"laptop\", \"phone\", \"headphones\", \"monitor\"]\n",
+    "\n",
+    "# Run full order process\n",
+    "inventory = initialize_inventory(products)\n",
+    "customer_orders = get_customer_orders()\n",
+    "update_inventory(customer_orders, inventory)\n",
+    "\n",
+    "# Generate and print statistics\n",
+    "order_stats = calculate_order_statistics(customer_orders, products)\n",
+    "print_order_statistics(order_stats)\n",
+    "\n",
+    "# Show final inventory\n",
+    "print_updated_inventory(inventory)\n"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "id": "cf8a4133-f61d-45ed-95f5-2d7501dee11d",
+   "metadata": {},
+   "outputs": [],
+   "source": []
   }
  ],
  "metadata": {
@@ -61,7 +326,7 @@
    "name": "python",
    "nbconvert_exporter": "python",
    "pygments_lexer": "ipython3",
-   "version": "3.9.13"
+   "version": "3.13.2"
   }
  },
  "nbformat": 4,