In the Burn’s scenario, it is apparent that some of the dependent variables are directly impacted by the largest independent variable, which is the economy’s stability. Inside that independent variable, lay the sales forecasts, the fact that the business is performing fairly well right now, and the new solution to manage inventories called “turn and earn”. Although forecasts are very important, managing the inventory and sales that each of the 25 dealerships actually have on hand is very important. With “turn and earn” in place, this means that each dealership receives new vehicles only at the same rate at which it sells cars. In other words, it is important that dealerships not underestimate demand and have too little supply, because their ability to acquire additional inventory depends on the number of cars they sell. On the other hand, ordering too many cars will result in excess inventories and hurt the dealerships’ profits due to the costs of carrying excess inventories.
In order to gather the correct data to decide how the dependent variables will end up in respect to the independent demand of implementing the plan, there has to be some sort of analysis that actually shows exactly what is needed. The owner, Thomas Burns has expressed interest in getting a consultant to provide the information that is needed. Richard is convinced that his consultant can get the desired results. The dependent variables in this situation can go either way since there can actually be a negative or positive outcome using this independent demand of hiring the outside consultant. Richard also has the idea that he could potentially perform the sales forecasts accurately himself, Thomas is looking to do a better job of getting the information that he needs to ensure that their “turn ...