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

Explain appropriate taguchi loss function, A quality characteristic has a d...

A quality characteristic has a design specification (in inches) of 0.200 +/- 0.020. If the actual process value of the quality characteristic exceeds 0.200 by the tolerance of 0.02

Explain is not one of the three types of specifications, Which of the follo...

Which of the following is not one of the three types of specifications discussed in the text? Answer Design specifications Material specifications Performance specifica

Explain reputation and credibility pressures, When JetBlue left their custo...

When JetBlue left their customers sitting on the tarmac for hours on Valentine's Day, and their CEO was ultimately terminated as a result, the company was responding to (pick the b

Explain what are the four main reasons for holding inventory, 1. What facto...

1. What factors enter into the choice of a value for the smoothing constant in exponential smoothing? 2. Name at least 3 competitive advantages of concurrent engineering? 3.

Priority sequencing, Priority Sequencing In sequencing jobs on machine...

Priority Sequencing In sequencing jobs on machines on one the process time of each job and their due dates of delivery are required. A priority rule is then decided upon in or

Define uninformed aspiring international business executive, "U.S Managemen...

"U.S Management theories contain a number of idiosyncrasies not necessarily shared by management elsewhere"...and then proceeds to mention three specific examples. Why might these

Assimngnet, racing cars prefers nickel based alloys for engine components

racing cars prefers nickel based alloys for engine components

Explain minimum probability of performing needed, A system consists of thre...

A system consists of three identical components. In order for the system to perform as intended, all of the components must perform. Each has the same probability of performance. I

Define the minimal long-term effect on the environment, Define the minimal ...

Define the minimal long-term effect on the environment. Practices for minimal continuing effect onto the environment: a. Reduction within the use of toxic substances. b.

Explain good corporate citizen and moral agent, • Do corporations have a re...

• Do corporations have a responsibility to be a good corporate citizen and moral agent? What do these terms mean to you? Justify your opinion by providing examples. • If you wer

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