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Math question


panther4life

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I’m a used car manager. I’ve set a goal for myself to sell 62.5 cars a month which is 750 a year. I predict the average number days each vehicle will be in stock at 35 days. For example one car may sell in 20 days and another takes 50 days to sell. The sum of those 2= 70 and 70 days divided by 2 = 35. 

So how many cars do I need to keep in stock to achieve this goal, assuming I’m turning each car within an average of 35 days?

This is probably much simpler of an equation than I’m making it out to be but brain is fried at the moment and im need of help. 

Thank you

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1 hour ago, stirs said:

Looks like you are selling about 2 per day, so 70?

I admit I have put no time in it beyond reading it and saying 2 cars per day and it takes 35 days to sell it, probably waaay to simplified

 

On the right track but you need to factor in demand variability and lead time in getting new cars.  

Maldonado how many designs.  If it’s all black model t your ok but if customer a comes in and he wAnts a red one and you have two green you just lost a sale.  

Not all the same widget

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9 minutes ago, Pejorative Miscreant said:

On the right track but you need to factor in demand variability and lead time in getting new cars.  

Maldonado how many designs.  If it’s all black model t your ok but if customer a comes in and he wAnts a red one and you have two green you just lost a sale.  

Not all the same widget

Yeah, I know there are variables, but none of that was given.  Cars vs trucks vs vans, lots of things left out for perfect model.

He indicates no lead time, nor a certain level of inventory beyond sales.  How big of a lot does he have?  

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It's not the number of cars on the lot that determines your turn rate.

There's a used car dealer here in town which is located across from a Hardees on one corner, a Sheetz on the other and a Shell on the 3rd corner. He sells nothing but used Hondas, keeps maybe 30-40 on the lot and turns them non-stop.

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