The company needs to store the equipment in

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Unformatted text preview: t locations in each city. Based on this information, the company should use ___________ to store its rental products. Answer Selected Answer: a. public warehousing Correct Answer: b. private warehousing R e s p o n s e F e e d b a c k : facilities facilities There are two issues here: (1) With a consistent high volume demand situation it's better to own than to rent; (2) A rental company operating a 'year-round' equipment rental business will have equipment on hand everyday of the year. Even if its all out on jobs, it will only be kept for a short period (until the job is done), so requires someplace to come back to as well as a location for maintenance to be conducted. Public (rented) warehouse space is preferable only if demand is inconsistent. Although you pay more for infrequently used space, the total cost is lower since you're not paying for it when you don't need it. In the situation described in the case, demand is constant throughout the year, thus no wasted days of not needed storage space. Question 8 4 out of 4 points Industry sales are zero and p...
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