Question
Aused car dealership has just opened in town. The facilities allow it to have up to 20 cars on the lot, including trade-ins and cars
Aused car dealership has just opened in town. The facilities allow it to have up to 20 cars on the lot, including trade-ins and cars for sale. This dealership focuses on a very specific segment: very expensive classic cars.The owner knows that average prices fluctuate throughout the year as customers change preferences with the seasons. The expected average value per car is forecasted below.The owner looks for these rare classics all over the world. His plan is to spend some months buying cars around the world and other months selling them back home. Based on previous experience, he won't be able to buy more than 10 carsnor sell more than 15 during any given month. The dealer starts with an inventory of 20 cars (full lot), but his plan is to get out of this business at the end of the year (all cars must be sold by them). Using LP, find the expected maximum profit and optimal strategy.
a. What is the final profit
b.When should he buy cars
c.How many cars should he buy per month
d.When shouldhe sell cars
e.How many cars should he sell per month
Month (t) Car Prices
Jan 100,000
Feb 98,000
March 132,000
April 150,000
May 160,000
June 185,000
July 190,000
August 190,000
Sept 175,000
Oct 130,000
Nov 122,000
Dec 115,000
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