Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Truck Rentals Inc. rents out trucks. It rents100 units per day on average to customers. Customers keep the trucks for an average of 8

ABC Truck Rentals Inc. rents out trucks. It rents100 units per day on average to customers. Customers keep the trucks for an average of 8 days. When customers return the trucks, the firm checks them to see if they require routine maintenance and cleaning or if they require significant repairs. On average, 70% require routine maintenance work and 30% require significant repairs (see chart below). After maintenance or repairs, equipment is inspected in 1 day and is then available to rent. There are on average 105 units in routine maintenance and 90 units getting repaired. The company likes to keep enough inventory of trucks in “Available to rent” to meet the demand for 5 days. Answer the following questions, clearly explaining your analysis and numbers.

On average, how many days does routine maintenance take?

On average, how many days do significant repairs take?

On average, how many trucks are in “Available to rent”?

What is the average utilization (trucks at customers divided by total trucks)?

What is the average time a truck spends at ABC Truck Rentals (not at customers)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Answer Given the data Flow rate for maintenance R1 10070 70 units per day Flow rate for repai... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to Management Science Quantitative Approach to Decision Making

Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran

15th edition

978-1337406529

More Books

Students also viewed these Accounting questions