PRESENTATION FRAMEWORKAbout the CompanyJIT Inventory SystemInventory DataInventory ForecastingStatistical Data
Mean, Mode and MedianRange and Standard DeviationFrequency DistributionNormal Distribution
ABOUT THE COMPANY manufacturer of affordable luxury cars started in the 1920s filed a Chapter 11 bankruptcy in 2009 shut down production during
bankruptcy court hearings
planned to close 20% of its dealership
JIT INVENTORY SYSTEMJust-In-Time (JIT) Inventory System
Quantum Solutions™ Back-up Inventory System
INVENTORY DATAMonth Year 1
2006Year 22007
Year 32008
Year 42009
1 18,000 45,100 59,800 35,5002 19,800 46,530 30,740 51,2503 15,700 22,100 47,800 34,4004 53,600 41,350 73,890 68,0005 83,200 46,000 60,200 68,1006 72,900 41,800 55,200 61,1007 55,200 39,800 32,180 62,3008 57,350 64,100 38,600 66,5009 15,400 47,600 25,020 31,400
10 27,700 43,050 51,300 36,50011 21,400 39,300 31,790 16,80012 17,100 10,300 31,100 18,900
Quantum Cars 4-year Inventory
Click to open
Quantum Cars
Historical Data.xlsx
INVENTORY FORECASTINGMonth Unadjusted
IndexAdjusted
Index
Month Year 12006
Year 22007
Year 32008
Year 42009
Year 5 Forecast
1 1.102656232 1.109183964 1 18,000 45,100 59,800 35,500 469732 1.019051129 1.025083918 2 19,800 46,530 30,740 51,250 434113 0.794836249 0.799541684 3 15,700 22,100 47,800 34,400 338604 1.38607416 1.394279728 4 53,600 41,350 73,890 68,000 590465 1.319562701 1.327374521 5 83,200 46,000 60,200 68,100 562136 1.19862318 1.205719037 6 72,900 41,800 55,200 61,100 510617 1.035870513 1.042002874 7 55,200 39,800 32,180 62,300 441288 1.274911183 1.282458666 8 57,350 64,100 38,600 66,500 543119 0.691337883 0.695430608 9 15,400 47,600 25,020 31,400 29451
10 0.939362047 0.944923077 10 27,700 43,050 51,300 36,500 4001711 0.706272705 0.710453844 11 21,400 39,300 31,790 16,800 3008712 0.460820022 0.463548079 12 17,100 10,300 31,100 18,900 19631
Average: 0.994114834 1 Total: 11.929378 12 Average 38,113 40,586 44,802 45,896 42,349
Inventory and Seasonal Indices
INVENTORY FORECASTING
Dealership Impact on Inventory
YearNumber
of Dealers
Monthly Average
Forecasted Monthly Average
1 2,493 38,113 38,3222 2,687 40,586 40,5283 3,008 44,802 44,1794 3,200 45,896 46,3635 2,560 42,349 39,084
2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,3000
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
f(x) = 11.3743063987138 x + 9966.30801619528R² = 0.983537909752442
Dealership Impact on Inventory
Number of Dealers
Monthly Inventory
Click to open
Quantum Cars
Historical Data.xlsx
STATISTICAL DATAMeasures of Central Tendency
and DispersionMean 42,348.96Mode 55,200.00Median 41,575.00Range 72,900.00Variance 329,688,384.33Standard Deviation 18,157.32
15,00
0
25,00
0
35,00
0
45,00
0
55,00
0
65,00
0
75,00
0
85,00
00
1
2
3
4
5
6
7
8
9
10
4-Year Measures of Central Tendency and Dispersion
Inventory in untis
Frequency
Median (41,575.00)
Mode (55,200.00)
Mean (42,348.96)
Range (72,900.00)
Standard Deviation (18,157.32)
Mean, Mode, Median, Range & Standard Deviation
Click to open
Quantum Cars
Historical Data.xlsx
STATISTICAL DATAMonth Year 1 - 2006 Year 2 - 2007 Year 3 - 2008 Year 4 - 2009
1 18,000 45,100 59,800 35,5002 19,800 46,530 30,740 51,2503 15,700 22,100 47,800 34,4004 53,600 41,350 73,890 68,0005 83,200 46,000 60,200 68,1006 72,900 41,800 55,200 61,1007 55,200 39,800 32,180 62,3008 57,350 64,100 38,600 66,5009 15,400 47,600 25,020 31,40010 27,700 43,050 51,300 36,50011 21,400 39,300 31,790 16,80012 17,100 10,300 31,100 18,900
Mean 38112.50 40585.83 44801.67 45895.83Mode #N/A #N/A #N/A #N/AMedian 24550.00 42425.00 43200.00 43875.00Range 67800.00 53800.00 48870.00 51300.00Variance 561022552.08 163041457.64 217615380.56 337421857.64StdDev 23685.91 12768.77 14751.79 18369.05
Yearly Statistical Data
STATISTICAL DATA
Year 12006
Year 22007
Year 32008
Year 42009
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Yearly Mean & Median Comparison
MeanMedian
Inventory
STATISTICAL DATA
Year 12006
Year 22007
Year 32008
Year 42009
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Yearly Mean, Range & StDev Comparison
Mean
Range
Inventory
STATISTICAL DATAMonth Year 1
2006Year 22007
Year 32008
Year 42009 Mean Median Mode Range Standard
Deviation
1 18,000 45,100 59,800 35,500 39,600 40,300 #N/A 41,800 17,5282 19,800 46,530 30,740 51,250 37,080 38,635 #N/A 31,450 14,4793 15,700 22,100 47,800 34,400 30,000 28,250 #N/A 32,100 14,1794 53,600 41,350 73,890 68,000 59,210 60,800 #N/A 32,540 14,6435 83,200 46,000 60,200 68,100 64,375 64,150 #N/A 37,200 15,5286 72,900 41,800 55,200 61,100 57,750 58,150 #N/A 31,100 12,9317 55,200 39,800 32,180 62,300 47,370 47,500 #N/A 30,120 13,8118 57,350 64,100 38,600 66,500 56,638 60,725 #N/A 27,900 12,6349 15,400 47,600 25,020 31,400 29,855 28,210 #N/A 32,200 13,535
10 27,700 43,050 51,300 36,500 39,638 39,775 #N/A 23,600 10,00011 21,400 39,300 31,790 16,800 27,323 26,595 #N/A 22,500 10,15212 17,100 10,300 31,100 18,900 19,350 18,000 #N/A 20,800 8,665
Monthly Statistical Data
STATISTICAL DATA
1 2 3 4 5 6 7 8 9 10 11 120
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Monthly Mean & Median Comparison
MeanMedian
Month
Inventory
STATISTICAL DATA
1 2 3 4 5 6 7 8 9 10 11 120
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Monthly Mean, Range & StDev Comparison
MeanRange
Month
Inventory
FREQUENCY DISTRIBUTIONBin
Limits Frequency
15,000 1
25,000 9
35,000 8
45,000 8
55,000 8
65,000 8
75,000 5
85,000 1
0
1
2
3
4
5
6
7
8
9
Inventory Histogram (Frequency Distribution)
Frequency
0 - 15,0
00
15,00
1 - 25
,000
25,00
1 - 35
,000
35,00
1 - 45
,000
45,001 -
55,000
55,00
1 - 65
,000
65,00
1 - 75
,000
75,00
1 - 85
,000
Quantum Cars Inventory Frequency Distribution
NORMAL DISTRIBUTION
-20000 0 20000 40000 60000 80000 100000 1200000
0.000005
0.00001
0.000015
0.00002
0.000025
Inventory Normal Distribution
Inventory in Units
Probability Density
-3σ -2σ -1σ μ 1σ 2σ 3σ
Click to open
Quantum Cars
Historical Data.xlsx
QUESTIONS?