Question: Answer all the following questions based on this problem: Each day, hundreds of thousands of cars around the country are rented for a variety of
Answer all the following questions based on this problem:
Each day, hundreds of thousands of cars around the country are rented for a variety of reasons. Most notably, more and more people are renting cars for business travel, and also for family vacations. Car rental agencies have continued to improve their business and increase competition by offering lower rates, airport pick-ups, and variety of different vehicles. Because of the variety of services car rental agencies provide, no two rental companies are alike. Some rental companies offer lower rates than others, but do not provide a variety of vehicle choices and may have longer pick-up times at the airport due to a lower number of running shuttles. Assume that your task is to select the best rental agency to contract out all the car rentals to for the business.

1. Which of the following is a correct objective function (In linear programming format) to evaluate the performance of ALAMO rental company:
| MAX 10U1 + 13U2 + 5U3 | ||
| MAX 0.10U1 + 13U2 + 5U3 | ||
| MAX 210U1 + 10U2 + 13U2 + 5U3 | ||
| MAX 5U3 |
2. In the above problem what is the equality constraint associated with the denominator of efficiency ratio of ENTERPRISE rental company?
| 279 V1= 1 | ||
| 279 V1 + 3.6 V2 = 1 | ||
| 279 V1 + 3.6 V2 + 21 V3 = 1 | ||
| 3.6 V1 + 21 V2 + 9.4 V3 = 1 |
3. In the above problem if we want to determine which car rental company is the choice for renting a car, using Benchmarking method , which of the following statements is correct?
| We average each rental companys efficiency by using its own input and output weights in addition to the weights of other companies. | ||
| We creates a Dummy rental company by selecting the best values of various inputs and outputs and include it with the existing rental companies and measure efficiencies again | ||
| We count the number of times a particular efficient rental company is referred to by other non-efficient rental companies. | ||
| We ranked them according their original efficiencies |
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