A Car Dealer Is Trying to Reduce the Number of Days

question 75

Essay

A car dealer is trying to reduce the number of days of inventory held at any given time on the lot. Assume that he projects the daily sales rate as the last two months averaged. Assume that the monthly sales rate for August was 12 cars/day, September was 14 cars/day, October was 12 cars/day, and November was 8 cars/day. Given an inventory of 500 cars at the start of November and 400 at the start of December, determine the number of days of inventory on hand at the start of November and December (also assume each month has EXACTLY 30 days of sales).

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Definitions:

Sensory Adaptation

The procedure through which sense organs gradually become less responsive to persistent stimuli, permitting living beings to focus on variations within their environment.

Touch

The act or sense of coming into physical contact with something else, providing sensory feedback and emotional communication.

Frequency Theory

A theory suggesting that the perception of pitch corresponds to the rate, or frequency, at which the entire basilar membrane vibrates.

Temporal Theory

A hypothesis in the study of perception, often relating to how sounds are perceived in terms of timing.