Cheapest car rental rents cars why getting loses, Operation Management

Assignment Help:

Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the short term segment, which rents for an average of .5 weeks, and the medium term segment, which rents for an average of 2 weeks. Cheapest currently rents an average of 200 cars a week to the short term segment and 100 cars a week to the medium term segment. Approximately 20% of the cars returned (evenly distributed across both segments) are found to be defective and in need of repairs before they can be made available for rent again. The remaining cars not needing repairs are cleaned, filled with gas, and made available for rent. On average, there are 200 cars waiting to be cleaned. The average cost of this operation is $5 per car. Cars needing repairs spend an average of 2 weeks in the repair shop and incur an average cost of $150 per car. Assume that cars are rented as soon as they are available for rent, that is, as soon as they have been cleaned or repaired. Short term renters pay $200 per week, while medium term renters pay $120 per week. Identify throughput, inventory and flow time at each stage? What profit does Cheapest earn per week with the current system? Assume that each car loses $40 in value per week because of depreciation?


Related Discussions:- Cheapest car rental rents cars why getting loses

Automation trends in operations management, how automation helps in trends ...

how automation helps in trends of operations management

Describe set up more responsible governance, You are consulting with a comp...

You are consulting with a company that is failing. It seems the CEO (recently fired) paid no attention to the board of directors. He was also heard to say, "I don't serve stockhold

What is global warming, Global warming is a topic that has been on the news...

Global warming is a topic that has been on the news. In your own words, do you believe that there really is an environmental crisis or do you believe that there is "hype" to create

Describe reducing equipment in the production process, Design for manufactu...

Design for manufacturing and assembly delivers product improvements by emphasizing which of the following? Reducing product quality during the assembly process Simplification

Explain the manager would prefer ordering, A food processor uses approximat...

A food processor uses approximately 29,730 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding c

Compute an analysis of the volume over, Peter Belington Stereo, Inc. suppli...

Peter Belington Stereo, Inc. supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed

Describe how advancing technologies in the security, Explain how advancing ...

Explain how advancing technologies in the security field are changing how end users are identified. In your response, identify potential security gaps that may be caused by these n

Scope overview as well business case sections of the project, The scope ove...

The scope overview and business case sections of the project charter provide the high-level "what and why" of the project

Sceduling for the short term, what are the advantage to finite capacity sch...

what are the advantage to finite capacity scheduling ?

Tobacco Auction Floor, How best can you increase efficiency of a tobacco au...

How best can you increase efficiency of a tobacco auction floor

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd