Question
which of the following statements is not a correct guide to adjusting fleet size in January in the pricing simulation choose the best answer you
which of the following statements is not a correct guide to adjusting fleet size in January in the pricing simulation choose the best answer you should increase fleet size to give you maximum flexibility in the quarter January through March because you know that demand is constant throughout the year the largest fleet size you should consider for January is the larger of Decembers week day or week in orders if you said January fleet side equal to the smaller of Decembers weekdays or we can order you can eliminate the resulting unfilled orders by raising price for the. Weekday or weekend that has unfilled orders this approach will increase profit if the environment inventory management cost savings of the smaller fleet exceed the loss revenues having fewer cars to rent. Even though the optimal prices you determined for December would be optimal for the rest of the year at the original fleet size you should test much lower fleet sizes to find the point where inventory management cost savings from reducing the fleet size are just offset by reduce revenue
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