Optimal Fleet Size And Mix For A Rental Car Company

Journal of Applied Business Research (JABR)

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Field Value
Title Optimal Fleet Size And Mix For A Rental Car Company
Creator Saadouli, Nasreddine
Subject Optimal Fleet Mix
Fleet Composition
Linear Programming
Yield Management
Description In this paper, a linear programming model for optimizing the fleet size and mix for a rental car company is developed and solved. Rental car companies depend on their fleet of vehicles for generating the entirety of their income. Additionally, the investments required are typically very significant due to the high cost of vehicles. Consequently, the composition of the fleet could significantly affect the company’s profitability and sustainability in a volatile demand environment. Determining the optimal fleet size and mix has been the focus of research in particular in revenue and yield management and VRP streams. However, most models focused on cost minimization without taking into account the resale value of vehicles once retired from the fleet. This paper addresses the problem from a return maximization perspective while taking into account resale values of vehicles. Sensitivity analysis is carried out to gain further insight into the problem and enable the model to support the company’s management in refining the strategic plan.
Publisher Clute Institute
Date 2021-09-01
Type info:eu-repo/semantics/article
Format application/pdf
Identifier https://clutejournals.com/index.php/JABR/article/view/10382
Source Journal of Applied Business Research (JABR); Vol. 37 No. 5 (2021); 151-160
Language eng
Relation https://clutejournals.com/index.php/JABR/article/view/10382/10433

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