=+a more effective inventory control system, highly uncertain demand in the various pharmacies makes this expedited inventory supply necessary. Rachel is concerned about the costs involved, however, and is considering an alternative to keeping the vehicle. She has been investigating the possibility of joining a car-sharing cooperative which makes vehicles available when necessary, and eliminates the fixed costs associated with keeping the vehicle. The cooperative has vehicle locations throughout Sydney and there is one within walking distance of each of her pharmacies. She has obtained the following data on the two options:

Maintain own vehicle Join car-sharing cooperative Parking for vehicle $1500 per annum Nil Kilometres travelled 12 000 6000 Fuel (assuming $1.65 per litre) $0.132 per kilometre Nil Fee per kilometre $2.56 Annual membership fee $2500 Registration $800 Nil Insurance 1750 Nil Maintenance $0.25 per kilometre Nil Number of hours (3 minutes for each kilometre travelled)*

*The number of hours and kilometres for the car-sharing cooperative is half because a car can be picked up from the closest cooperative garage.

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