Rent-A-Dress: Renting Fashion for Cheap Rent-A-Dress (RAD) rents out designer fashion apparel to customers who would like to wear elegant dresses on special occasions but do not wish to purchase them. For example, a customer can rent a $1000 dress for $25 per day for a 10-day rental period To rent a dress, a customer visits the RAD website which displays the available dresses and their rental prices. On average, RAD sees rental demand of 100 dresses per day. The number of webpage views is actually very large, but not everyone rents. Many leave the website, not finding the dresses they want. To ensure that enough customers do find dresses, RAD keeps 5 days' demand (i.e., 500 dresses) in their "Rental-Ready Inventory", which includes different styles and sizes. This number must be large due to a variety of dresses RAD keeps as well as the policy that RAD ships two dresses (same style in two different sizes) to satisfy a customer's request for one dress. When taking a rental order, RAD requires that a customer specify two sizes for each dress she requests -the most likely and second most likely size. This minimizes the customer's hassle in returning a dress because of fit issues. Once a customer places a rental order, two dresses (one style in two sizes) are sent to customer via UPS next-day delivery (one- day shipping that costs S5, borne by RAD). At the end of rental period, the customer returns the two dresses in a pre-labeled UPS package. Return shipping takes one day, and again costs S5, borne by RAD Upon its return, a dress is first inspected and classified as either "good" or "damaged". RAD incurs $1 in labor, on average, to inspect and classify each dress. On average, 70% of returned dresses are found to be in good condition and require minimal cleaning, which is performed at QuickClean laundry located next door to RAD's fulfillment center. QuickClean charges S5 for cleaning each dress, and after cleaning the dress is placed back in "Rental-Ready Inventory". Damaged dresses may require more rigorous cleaning or some repair. These dresses are sent across town to MaxClean laundry. Since MaxClean is farther way, RAD typically batches a number of dresses before sending them to MaxClean. MaxClean charges S10 for cleaning each dress, after which the dress is placed back in the "Rental-Ready Inventory