Full Revenue Model. In this model we will assume that dresses are rented 100% of the time at full revenue. The assumptions will therefore be that dresses will never be held in inventory (they will either be shipping, rented, or out for cleaning), and the dresses are always rented at full rental price. Analyze revenue assuming all 4 day rentals and all 8 day rentals. This will provide us with an upper bound of revenue.

Dress Data
Number of coies of a dress	8	dresses
Rental Type Data
	Price	% Customers
4 day rental	$45.00	80%
8 day rental	$72.00	20%
Customer Breakdown	Percentage	Revenue
Full Price Rental	50%	(See Above)
Free Second Size Rental	30%	$-
Additional Rental for $32.50	20%	$32.50
Rental Time Data
Rental horizon	180	Days
4 day rental time	4	Days
8 day rental time	8	Days
Outbound shipping	2	Days
Inbound shipping	2	Days
Cleaning Time	1	Day
Demand Data
First 90 days	6	rentals per week
Second 90 days	2.5	rentals per week

1) (3 Points) Please calculate the following assuming only 4 day rentals:

Maximum rentals per dress

Maximum revenue per dress

Maximum revenue for all dresses

2) (3 Points) Please calculate the following assuming only 8 day rentals:

Maximum rentals per dress

Maximum revenue per dress

Maximum revenue for all dresses

3) (2 Points) Please calculate the maximum potential revenue for the dresses (upper bound on revenue).

Upper bound on revenue