This preview shows page 1. Sign up to view the full content.
Unformatted text preview: t locations
in each city. Based on this information, the company should use ___________ to store its rental
Answer: a. public warehousing Correct
Answer: b. private warehousing R
: 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...
View Full Document
- Spring '12