Question 4 (15 points)

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 demand for 5 days.

Answer the following questions, clearly explaining your analysis and numbers (each 3 points). Show clearly how you arrived at your answer to get credit.

1. On average, how many days does routine maintenance take?

1. On average, how many days does significant repairs take?

1. On average, how many trucks are in "Available to rent"?

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

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