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Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the short - term segment, which rents for
Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the shortterm segment, which rents for an average of week, and the mediumterm segment, which rents for an average of weeks. Cheapest currently rents an average of cars a week to the shortterm segment and cars a week to the mediumterm segment. Approximately percent 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 cars waiting to be cleaned. The average cost of this opera tion is $ per car. Cars needing repairs spend an aver age of weeks in the repair shop and incur an average cost of $ 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. Shortterm renters pay $ per week, while mediumterm renters pay $ per week. The flow of cars is shown in Figure Identify throughput, inventory, and flow time at
each stage.
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