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(Car Rental Company) The airport branch of a car rental company maintains a fleet of 50 SUVs. The interarrival time between requests for an SUV
(Car Rental Company) The airport branch of a car rental company maintains a fleet of 50 SUVs. The interarrival time between requests for an SUV is 2.4 hours, on average, with a standard deviation of 2.4 hours. There is no indication of a systematic arrival pattern over the course of a day. Assume that, if all SUVs are rented, customers are willing to wait until there is an SUV available. An SUV is rented, on average, for 3 days, with a standard deviation of 1 day. a. What is the average number of SUVs parked in the company's lot? [9.6] b. Through a marketing survey, the company has discovered that if it reduces its daily rental price of $80 by $25, the average demand would increase to 12 rental requests per day and the average rental duration will become 4 days. Is this price decrease warranted? Provide an analysis! [9.6] c. What is the average time a customer has to wait to rent an SUV? Please use the initial parameters rather than the information in part (b). [9.6] d. How would the waiting time change if the company decides to limit all SUV rentals to exactly 4 days? Assume that if such a restriction is imposed, the average interarrival time will increase to 3 hours, with the standard deviation changing to 3 hours. [9.6]
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