The Hackney Case
One of the constraints is that cash flow must be ___________ payments
greater than
Estimated $125 billion industry by this year
2022
These are the two basic types of aggregate plans
Linear Programming is a ________ system that determines the optimal allocation of scarce resources among a number of competing alternatives
decision support
Which rental car company did Robert share a salary testimonial on?
Hertz
Hackney Rent-a-Car Budget.
$5 million
The year that Ford buys Hertz and gains 100% ownership
1994
The two types of aggregate planning strategies
Name 2 industries/scenarios discussed in class that utilize linear programming
1) Petroleum Refining
2) Wine Blending
3) Investment Portfolio
4) Manpower Scheduling
Name an industry mentioned in class that uses yield management with regards to pricing.
1) sporting tickets
2) airlines
3) hotels
3) theme parks
Name two of the factors taken into consideration for the sensitivity analysis.
•Interest rate
•Discount rate
•Down payment
•Net Margins
•Fleet mix
Name two ways someone can rent a vehicle
Walk-ins, Call-ins, Mobile or Online Reservations
The standard timeframe for an aggregate plan generally ranges between this amount of time.
3-18 months
A linear programming model consists of three elements; name two.
1) objective function
2) a set of decision variables
3) a constraint matrix
What is a feasible solution that optimizes the value of the objective function?
Optimal solution
Hackney makes two assumptions; name one.
Hackney assumes:
1) a 10% Discount rate
2) That they can rent all of the cars they purchase
The company with the largest fleet size (of over 1 million vehicles)
Enterprise Holdings (Alamo, National, and Enterprise)
An approach for modifying demand typically through pricing & advertising
Proactive Planning
All linear programming models have at least one _____________.
Constraint
This strategy is an approach for modifying demand typically through pricing and advertising
Proactive Strategy
There are two constraints with regards to the fleet mix, what are they?
At least 15% of each type
No more than 50% of any one type
Who are the top three rental car companies today?
Enterprise, Hertz, Avis - Budget
What are the three objectives of Aggregate Planning
1) Maximize Efficiency
2) Minimize Inventory
3) Minimize Costs
The general approach in applying linear programming consists of these three steps.
1. Model Formulation
2. Model Solution
3. Results Analysis
What is Yield Management?
Yield management is a variable pricing strategy based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time limited resource.