...interarrival time between request? a)What is the average number of SUVs parked in the company's lot? [Hint: Compute the utilization of the SUVs first. SUVs in the company are the idle resources.]
b)Through a marketing survey, the company has discovered that if it reduces its daily rental price of $100 by $20 (for this part only), the average demand would increase to 15 rental requests per day and the average rental duration will remain unchanged. Is the price decrease warranted? Provide the analysis! [Hint: Compare the daily revenues before and after price cut. The daily revenue equals the daily rental price times the average number of SUVs with customers.]
c)What is the average time a customer has to wait to rent an SUV? Please use the initial parameters rather than the information in (b).
d)How would the waiting time change if the company decides to limit all SUV rentals to exactly 4 days? Assume that if such a restriction is imposed, the average interarrival time will increase to 4 hours, with the standard deviation changing to 4 hours. [Hint: this means the standard deviation of the service time becomes zero.]
b)Through a marketing survey, the company has discovered that if it reduces its daily rental price of $100 by $20 (for this part only), the average demand would increase to 15 rental requests per day and the average rental duration will remain unchanged. Is the price decrease warranted? Provide the analysis! [Hint: Compare the daily revenues before and after price cut. The daily revenue equals the daily rental price times the average number of SUVs with customers.]
c)What is the average time a customer has to wait to rent an SUV? Please use the initial parameters rather than the information in (b).
d)How would the waiting time change if the company decides to limit all SUV rentals to exactly 4 days? Assume that if such a restriction is imposed, the average interarrival time will increase to 4 hours, with the standard deviation changing to 4 hours. [Hint: this means the standard deviation of the service time becomes zero.]