Question: Q 1 . ( 1 0 points ) Town and Country Rental Car has experienced a substantial increase in business volume because of recent fare
Q points Town and Country Rental Car has experienced a substantial increase in business
volume because of recent fare wars between the major air carriers. Town and Country operate a
single office at a major international airport, with a fleet of compact and midsize cars.
Recent developments have prompted management to rethink the company's reservation policy.
The table below contains data on the rental experience of Town and Country. Midsizecar
customers do not choose to rent a compact when no midsize car is available, or the other way
around. The discount rate is available to persons who are willing to reserve a car in advance, and
there is sufficient demand for the discount rate. The daily demand of full rate customers
appears to follow a uniform distribution. The current reservation policy is that compact cars
are held for customers who are willing to pay the full rate and midsize cars are held for full
ratepaying customers. Using revenue management, determine the optimal number of compact
and midsize cars to be held for customers paying the full rate. SOLVE USING REVENUE MANAGEMENT
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