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Problem 4 The airport branch of a car rental company maintains a fleet of 50 SUVs. The interarrival time between requests for a SUV is 2 hours, on...


Problem 4


The airport branch of a car

rental company maintains a fleet of 50 SUVs. The interarrival time between requests for a SUV is 2 hours, on average, with a standard deviation of 2 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. A SUV is rented, on average, for 4 days, with a standard deviation of 1 day. For people who wait for SUVs, the company gives vouchers (rebates) worthy of $0.5 per hour per waiting customer.


a.

What is the average number of SUVs parked in the company's lot?


b.

How long does a customer, on average, have to wait for a SUV?


c.

What are the total monthly (30 days) expenses for vouchers (rebates)?


d.

Assume that it costs the company $800 per unit per month for a new SUV. Is it worth

it to buy one additional SUV? Why

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