Вы находитесь на странице: 1из 26

SM RENTALS REPORT

JLLY CONSULTING

SM RENTALS REPORT
Team 6

SM RENTALS REPORT

EXECUTIVE SUMMARY
In order to aid the fictional organization SM Rentals, a budget car rental service, we simulated
the operation of a midsize airport location. Using data provided that pertained to the arrivals and
departures of customers, we developed a simulation model that will process the route taken by
customers as they arrive in order to discover the total amount of time that they spent in the
system. SM Rentals set a threshold of less than 18 minutes spent waiting on departure and 20
minutes upon arrival to determine satisfaction. The purpose of this case is to determine the
required resources to achieve satisfaction rates of 85% and 90%. Upon analyzing the case, we
came to the conclusion that the three significant variables determining the time that customers
spent in the system were:
1. Van Size
2. Number of Rental Counter Agents
3. Number of Drivers
Upon running multiple regression on the van size, we found that the large, 30 seat van was the
least significant and therefore removed it as an option for this model. This multiple regression
also found that the optimal number of agents and drivers for reducing the time customers spent in
the system was 18 and 16, respectively. However considering the satisfaction threshold set by
SM Rentals of 18 minutes for arrivals and 20 minutes for departures, it was possible to analyze a
smaller subset of options. 24 combinations were simulated using Arena software and their data
recorded and analyzed in Excel.
The results processed in Excel revealed that in order to meet the 85% satisfaction threshold, SM
Rentals was best served with 12 agents and drivers, while using small sized vans. The total cost

SM RENTALS REPORT
of these resources is $1,743.31. This arrangement allowed for a steady flow of customers into the
rental counter, which prevented any bottlenecks that could cause customers to exceed their limit.
In order to reach the 90% threshold, 2 additional drivers were required, bringing the total number
of drivers and small vans to 14, with 12 rental counter agents. The total cost of the inputs
required is $1,932.96. The improvements yielded by the additional 2 drivers and vans were
primarily in increasing the number of drivers available at peak hours, preventing a bottleneck
from forming and allowing for more regular van service.
By using these combinations of resources, SM Rentals will be able to maintain their low cost
service while at the same time maintaining high levels of customer satisfaction. This will serve
them well as more competitors enter the markets that SM Rentals currently occupies, or if SM
Rentals intends to expand in the future. Utilizing these recommendations will allow for SM
Rentals to retain their customers and grow their customer base, which will allow for greater
revenue, and consequently more profit, in both the short- and long-term.

ii

SM RENTALS REPORT

TABLE OF CONTENTS
Introduction: ................................................................................................................................................. 1
Case Background ....................................................................................................................................... 1
Challenges ................................................................................................................................................. 2
Objectives ................................................................................................................................................. 2
Limitations ................................................................................................................................................ 3
METHODS ...................................................................................................................................................... 4
Data used .................................................................................................................................................. 4
Flow of model ........................................................................................................................................... 5
Actual Model ............................................................................................................................................. 6
Metrics tracked ......................................................................................................................................... 9
Wait time ............................................................................................................................................ 10
Average Flow Time .............................................................................................................................. 10
Multi Regression Analysis ....................................................................................................................... 10
Writing into Excel .................................................................................................................................... 12
RESULTS ...................................................................................................................................................... 13
DISCUSSION................................................................................................................................................. 15
INNOVATION IN APPROACH AND METHODOLOGY .................................................................................... 16
FURTHER CONSIDERATIONS ....................................................................................................................... 19
CONCLUSION............................................................................................................................................... 19
APPENDIX .................................................................................................................................................... 21

iii

SM RENTALS REPORT

LIST OF FIGURES
Figure 1: Van Route ........................................................................................................................ 5
Figure 2: Create Customers ............................................................................................................ 6
Figure 3: Create Van Drivers .......................................................................................................... 7
Figure 4: Retail Counter Loading ................................................................................................... 7
Figure 5: Drop-off Station .............................................................................................................. 7
Figure 6: Terminal 1 and Terminal 2 Loading................................................................................ 8
Figure 7: Retail Counter 1............................................................................................................... 9
Figure 8: Retail Counter 2............................................................................................................... 9
Figure 9: Small Van Output .......................................................................................................... 10
Figure 10: Medium Van Output .................................................................................................... 11
Figure 11: Large Van Output ........................................................................................................ 11
Figure 12: Excel Data Summary ................................................................................................... 13
Figure 13: Simulation Results....................................................................................................... 14
Figure 14: Drop-off Queue at the Rental Counter ........................................................................ 16

iv

SM RENTALS REPORT

INTRODUCTION
Case Background
This project is based on Case Competition 5 provided by Dr. Payman Jula from the IIE/RA
Contest Problems. The scenario pertains to a fictional budget car company that is facing an
increasingly challenging environment and is aiming to increase their efficiency. In order to do so
they have hired JLLY Consulting, who will simulate the processes involved in their business.
They have provided data pertaining to the arrivals from two separate terminals along with those
who are returning to the airport.
The basic premise of the model is to simulate the route taken by the vans as they travel between
the Rental Counter to the Drop-off Point, to Terminal 1, Terminal 2, and then back to the Rental
Counter. The end goal is to have a minimum of 85% satisfaction rate from the customers, which
is determined by the amount of time they spend in the system. For those arriving, this
benchmark is 20 minutes, and for those departing it is 18 minutes. The reason we will aim for an
85% satisfaction is that there will be those customers who, for various reasons, will require an
extra amount of time. We will also find what combination of variables will be necessary to
maintain a 90% satisfaction rating, and what the end cost will be for both the 85% and 90% rate.
The variables available to find the optimal model are:
1. The number of customer service agents at the Rental Counter,
2. The number of vans and corresponding van drivers,
3. The size of the vans.
The hourly cost for the customer service agents and van drivers are $11.50 and $12.50
respectively. The cost for a large, 30 seat van is $0.92/mile, a midsize, 18 seat van is $0.73/mile
1

SM RENTALS REPORT
and a small, 12 seat van is $0.48/mile. We will assume that the size of vans will be constant for
the simulation period, which is from 4:00pm to 8:30pm as outlined in the case.

Challenges
This model will face a number of challenges as we work to simulate a real world scenario which
will have a variety of different factors.
One of these challenges is determining the appropriate base set of variables to use in the
simulation. Ideally, we would have some idea from the existing business of what has worked for
the business. However, this is not available. With a wide variety and combination of variables,
we will need to narrow this field.
Another challenge is the analysis of the data. Due to the structure of the model, it may be
necessary to analyze the output in another program for ease of use.

Objectives
The end goal of this simulation is to manipulate the customer service agent, number of vans and
van size variables to uncover the optimal combination that will maximize customer satisfaction
and minimise the overall costs.
The benchmark for this goal is to have a minimum of 85% satisfaction by the customers, which
is determined by the amount of time they spend in the system. For those arriving, this
benchmark is 18 minutes, and for those departing it is 20 minutes. The reason we will settle for
an 85% satisfaction is that there will be those customers who for various reasons will require an
extra amount of time. We will also find what combination of variables will be necessary to
maintain a 90% satisfaction rating, and what the end cost is for both the 85% and 90%
satisfaction.
2

SM RENTALS REPORT

Limitations
Since we are using a software program to simulate events that would happen in the real world,
we must address the limitations of Arena for real world events, as well as the challenges
presented by the information presented, and not presented, in the case
Among the information deficits is the information regarding the luggage. Theoretically, a
customer with more luggage would require more time to load and disembark from the van, and
may restrict the amount of space available for other customers. However, this information was
not provided for the case, and we therefore must consider it something that will be dealt with in
future models.
Another limitation is more specific to the real world; more precisely, traffic and pedestrians.
While the model will assume the vans will travel unimpeded, this will not always be the case as
airports can be very busy. Since there is no information regarding the traffic cycles and delays,
we will assume ideal situations for the car rental vans, although this is highly unlikely.
We also must consider the role of human error in a real world situation. Since there is no way to
build this completely random element into the model, it will have to be a limitation that is
considered when implementing any findings.
Another consideration is that of back-up plans. When working with machinery, it is highly
likely that there will be some issue at various points of the day, such as the need to refuel, low air
pressure in the tires, or low oil. However, this goes beyond the scope of our model in this
iteration, and therefore can be dealt with in future models.

SM RENTALS REPORT

METHODS
Data used
In the appendix we have provided the data set pertaining to the arrival times at the various entry
points to the model (Table 1). This data has been entered into Arena in the create entities
section. The data is focussed on the peak business period for the car rental, and therefore we will
only simulate for the peak period of 4:00pm until 8:30pm. The data is presented in intervals, with
the number of arrivals per 15 minutes.
Also included in the create entities is the likelihood that they will have a passenger with them.
60% have no passenger, 20% have 1 passenger, 15% have 2 passengers, and 5% have three
passengers. The table containing this information can be accessed in the appendix (Table 2).
In order to properly model this scenario, we needed to include the distances between the various
points that the vans would travel in the model. These distances were:

Rental Counter to Terminal 1: 1.5 miles

Rental Counter to Drop-off Point: 1.7 miles

Drop-off Point to Terminal 1: 0.5 miles

Terminal 1 to Terminal 2: 0.3 miles

Terminal 2 to Rental Counter: 2.0 miles.

Figure 1 below illustrates the route for the model:

SM RENTALS REPORT

Figure 1: Van Route

This data is important as the cost of the vans is based on the distance travelled, and therefore an
important component of the model.
The average speed of the vans that we will assume for the purposes of this model is 20 miles per
hour.

Flow of model
The flow of model consists of customers who are returning their rented cars to the Rental
Counter arriving at the Rental Counter and meeting with the first available rental agent then
queuing for the next available van. The van will arrive, pick up all the passengers, or as many as
will fit, and then move onto the Drop-off Point where all the customers will disembark.
The van will then move to Terminal 1, pick up the customers and their passengers that are
awaiting the van, then repeat the process at Terminal 2 until all the customers are picked up, or
there are no more available seats.
From here, the van will return to the Rental Counter where the passengers will disembark and the
van will collect the next group of passengers and repeat the process, beginning with the Drop-off

SM RENTALS REPORT
Point (unless there are no customers waiting, in which case it will proceed directly to Terminal
1).
Those who have arrived with the van to the Rental Counter will proceed inside, and will queue
up for the next available agent. When they have been served by the agents present, they will
then move on and out of the system with their rental car.
These processes will repeat for the time period of 4:30 until 8:30.

Actual Model
The model will begin with the creation of entities for the three entry points in the model. They
will immediately be assigned the required attributes, and then they will move to the required
portion of the van movement model.

Figure 2: Create Customers

The van drivers are created separately and are released into the system within the completion of
one cycle by the first van, and in intervals that allow initially for the equal spacing of vans
around the airport route. In order to simulate real world events, the vans are set to begin at the
6

SM RENTALS REPORT
Rental Counter, determining if there are any passengers present, then if any fit the criteria
matching the number of available seats. This process will continue as a loop until there are no
more passengers that can fit into the van, or if there are no passengers still waiting.

Figure 3: Create Van Drivers

Figure 4: Retail Counter Loading

From this point, the van will travel onto the Drop-off Point, where the entities will exit the
system, and the van will reset its number of available seats before moving onto the next station,
Terminal 1.

Figure 5: Drop-off Station

SM RENTALS REPORT
At Terminal 1, it will repeat the same procedure that it did with the Drop-off Point, determining
if there are passengers waiting, and then if there are any that will fit into the remaining seats.
Upon satisfying this procedure, it will move on to Terminal 2 and repeat the procedure once
more. Then it will return to the Rental Counter.

Figure 6: Terminal 1 and Terminal 2 Loading

At the Rental Counter, the van will empty and reset its seats, then load up passengers waiting to
be dropped back off at the airport, and repeat its path. For those who have just disembarked
from the van, they will proceed to the Rental Counter, where they will queue up at the rental
counter alongside passengers who are returning their cars and dropping off their keys. After
getting processed by the agent at the rental counter, all the customer entities will pass through a
decision that will distinguish them from those who have picked up their car (arrived at T1 and
T2), and those who have just dropped off their car (needs to be dropped off). Those who have
picked up their car will proceed to leave the rental counter and depart from the system.

SM RENTALS REPORT
Customers who have dropped off their cars and needs to be dropped back off at the airport will
queue up for a van, which will take them back to the airport to be dropped off and disposed off.

Figure 7: Retail Counter 1

Figure 8: Retail Counter 2

If there are no customers lined up at the rental counter to get dropped, the van will proceed from
the rental counter directly to T1, bypassing the Drop-off Area. It is important to note that if there
are no passengers waiting at a station, the van will proceed straight through, as they would in a
real world situation.

Metrics tracked
In order to gain an understanding of what the model illustrates, there was a variety of data
captured from the simulations.

SM RENTALS REPORT
Wait time
Since wait time is a key portion of the models end goals, it was important to record these
statistics for analysis. The wait time consists of the time that the customer spent within the
system, from arrival to departure. This was collected under a variety of different scenarios, using
a different combination of agents, van sizes, and number of drivers each time.
Average Flow Time
Average flow time was captured in order to illustrate the amount of time the entity spent in the
system from creation to disposal.

Multi Regression Analysis


Running this module, it was found that the 30-seat van was negligible, with results that were
highly similar to the 18-seat van. Therefore, the simulation will be limited to testing variations
of inputs with the small and medium sized vans.

Figure 9: Small Van Output

10

SM RENTALS REPORT

Figure 10: Medium Van Output

Figure 11: Large Van Output

Using this same output, we found that the number of agents plateaus in the range from 12 to 14,
as illustrated by the blue box in Figures 9-11 above. This means that there are decreasing
marginal returns for additional personnel, and our resources are better focussed on the 12-14
agent range.
11

SM RENTALS REPORT
The drivers output shows that the number of drivers that will minimize time is 13, as illustrated
in Figures 9-11 above in the green box. However, we will analyze more options around this
number in order to ascertain the best option.
It is important to note that the goal of this model is not solely minimizing time however; we must
also consider the cost of the inputs required to reduce the time.
Based off this information, we will run simulations for 24 different variations of the
small/medium size vans, number of drivers, and number of agents. The goal of the combinations
will be to satisfy the 85%, and 95%, satisfaction rates while minimizing the costs.
In order to ensure accuracy, we will run each simulation for 5 days, and take the average from
this set of 5.

Writing into Excel


In order to summarize the information produced by the model, we utilized the Write module in
Arena to copy the data into Excel. In particular, we focussed on the total time the customers
spent within the system in order to test the satisfaction levels with each combination of variables.
From Excel, we will then average the data points collected from each run of the model, and bin
them in order to determine the distribution and test their satisfaction against the standards we
have set. Figure 12 below illustrates the summary of data for one combination of variables.

12

SM RENTALS REPORT
Arrival

Dropoff

Avg. time in system: 15.54439


Bins

#
0
5
10
15
20
25
30

Count
Sat. Rate

12.49364
Bins

0
0
108
755
494
253
45
1656
0.819444

#
0
5
10
15
18
25
30

0
0
501
573
208
183
0
1465
0.875085

Figure 12: Excel Data Summary

As shown above, the time is averaged, and the distribution is shown in the bins below, along
with the total number of customers that were in the system for the simulation. The satisfaction
rate is found by summing the total number customers that were under the time limit, and then
divided by the total count.
For instance, the arrival bins 0, 5, 10, 15, and 20 have values that sum to 1,357. Divide this
value by the total count, 1656, and the satisfaction rate is 81.9%.

RESULTS
Referring to Figure 13 below, we can see the outcome for the 24 simulated scenarios.
It is immediately apparent from looking at the satisfaction section that the least expensive
combination for a minimum of 85% satisfaction is combination 3, with 87.9% satisfaction for
arrivals and 91.72% for departures. This entails:

13

SM RENTALS REPORT

Van = Small (Fuel Cost = $447.31)

12 Drivers

(Wages = $675)

12 Agents

(Wages = $621)

Total cost

$1,743.31

In order to satisfy the 90% satisfaction goal, combination 11 is the least expensive option. This
provides a satisfaction rate of 95.17% for arrivals and 95.96% for departures. The variables are:

Van = Small (Fuel Cost = $524.46)

14 Drivers

(Wages = $787.50)

12 Agents

(Wages = $621.00)

Total Cost = $1,932.96


Outcomes

Comb. #
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Car Types
Small (12)
Small (12)
Small (12)
Small (12)
Small (12)
Small (12)
Small (12)
Medium (18)
Small (12)
Medium (18)
Small (12)
Small (12)
Medium (18)
Medium (18)
Small (12)
Medium (18)
Small (12)
Medium (18)
Medium (18)
Medium (18)
Medium (18)
Medium (18)
Medium (18)
Medium (18)

Fuel Costs
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

403.82
403.82
447.31
403.82
447.31
490.00
447.31
612.45
490.00
612.45
524.46
490.00
612.45
683.55
524.46
683.55
524.46
683.55
738.64
738.64
738.64
796.92
796.92
796.92

#s of Drivers
11
11
12
11
12
13
12
11
13
11
14
13
11
12
14
12
14
12
13
13
13
14
14
14

Cost
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

#s of Agents Cost
618.75
618.75
675.00
618.75
675.00
731.25
675.00
618.75
731.25
618.75
787.50
731.25
618.75
675.00
787.50
675.00
787.50
675.00
731.25
731.25
731.25
787.50
787.50
787.50

12
13
12
14
13
12
14
12
13
13
12
14
14
12
13
13
14
14
12
13
14
12
13
14

Figure 13: Simulation Results

14

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

621.00
672.75
621.00
724.50
672.75
621.00
724.50
621.00
672.75
672.75
621.00
724.50
724.50
621.00
672.75
672.75
724.50
724.50
621.00
672.75
724.50
621.00
672.75
724.50

Total Cost
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,643.57
1,695.32
1,743.31
1,747.07
1,795.06
1,842.25
1,846.81
1,852.20
1,894.00
1,903.95
1,932.96
1,945.75
1,955.70
1,979.55
1,984.71
2,031.30
2,036.46
2,083.05
2,090.89
2,142.64
2,194.39
2,205.42
2,257.17
2,308.92

<= 20 Mins
<= 18 Mins
Satisfaction Rate for Arrival Satisfaction Rate for DO
81.94%
82.44%
87.92%
82.67%
87.79%
89.20%
87.69%
78.76%
85.59%
82.00%
95.17%
89.68%
82.61%
85.52%
92.75%
88.29%
93.05%
89.67%
92.10%
92.39%
91.62%
90.27%
92.82%
92.03%

87.51%
87.98%
91.72%
87.09%
89.96%
91.64%
90.01%
85.71%
88.42%
88.16%
95.96%
91.10%
87.44%
90.96%
94.19%
90.97%
94.53%
92.48%
94.19%
93.01%
92.95%
92.11%
94.19%
92.68%

SM RENTALS REPORT

DISCUSSION
The objective of the model has been accomplished, as the number of resources needed to
maintain 85% customer satisfaction and 90% customer satisfaction has been determined at the
lowest possible cost.
Analysis of the van sizes has determined that the largest van is inconsequential to finding the
optimal mix, and is therefore discarded as a variable. This makes sense logically, as this van was
the least efficient in terms of fuel, and would only be of great value with minimal drivers;
however, more drivers allows for customer pickup frequency to increase, and therefore is more
likely to aid in reducing the wait time, consequently increasing customer satisfaction.
A surprising fact regarding the medium and small van sizes is that the small van size was much
more significant in maintaining customer satisfaction. The difference between the lowest
operating costs per day for small vans while maintaining the 90% satisfaction rate was $157.93,
an 8% increase. Additionally, the optimal combination for small van was also the only
combination that allowed for a satisfaction rate over 95% for both departing and arriving
customers. Considering the importance of customer satisfaction and low prices, this is a key
point.
The results from the chart would indicate that an approximate balance is needed between the
number of drivers and the number of agents when utilising a small or medium sized van.
Logically, this would make sense, as the flow of customers into the rental counter would be
relatively steady, and therefore requires there to be an approximate match between number of
customers on the van and the number of agents.

15

SM RENTALS REPORT

INNOVATION IN APPROACH AND METHODOLOGY


Because we chose to model our vans using entities, we had to come up with a way that would
allow for the customers (also entities) to travel with the van-entity. We chose to use a Hold
module to represent the passenger entities queuing up for a van at T1, T2 and at the Rental
Counter waiting to get dropped off. The methodology that we decided to use involves a search
and pick loop, where the van will travel through the loop, picking up as many passengers as
possible, and then exiting the loop.

Figure 14: Drop-off Queue at the Rental Counter

For example, in the Drop-off Queue at the Rental Counter Loop the van-entity will enter the
station and reach the decision node. The decision node contains the expression ((NQ(Drop Off
Hold.Queue))>0) && (Seats>0), asking if the length of Drop Off Hold.Queue is greater than 0
(is there someone in the queue?) and if the van-entitys seat-attribute is greater than 0 (does my
van have at least 1 empty seat?). If both conditions are satisfied, the van-entity will proceed to
assign a variable, in this case DO Seats Var, to be equal to its current Seats-attribute. This step is
necessary because the search module following it requires that a variable be used in its search
condition.

16

SM RENTALS REPORT
The van-entity then reaches the search module, where we have specified that it is to search
through the entire Drop Off Hold.Queue (NQ = length of queue), and to assign the letter-variable
J to the first entity in the queue that satisfies the search condition (Number of Passengers <= DO
Seats Var), meaning the first customer-entity in the queue whose number of passengers-attribute
is less than or equal to the number of seats available in the van. This equation gives us the
advantage of being able to bypass a customer-entity if their number of passengers exceeds the
seats available, and pick up the next customer-entity whose number of passengers is equal to or
less than the number of seats available, reflecting the real-world situation. If none of the
customer-entity fulfill the requirement (all of the customers have more passengers than the
number of seats available), they will exit the loop.
The van-entity then picks up the customer-entity that we have identified and labeled in the search
condition with the variable J. Following the pickup, there is a delay for the boarding time in the
van. This is represented by a Delay block, with the delay time being AG(NG,NSYM(Number of
Passengers))*12/60. As the most recent entity picked up joins the end of the group, the Delay
time formula specifies that we want to find the number of passengers-attribute from the last
entity in the group (NG = group size), and multiply it by 12 seconds for boarding time. We then
also have to divide the formula by 60 seconds since our base unit is in minutes.
The usage of a Delay block, which is almost at the lowest level of building blocks in Arena,
rather than using a Delay module or even accounting for delay in the Leave modules is because
this method allows for a more accurate animation of delay. Using the other two modules listed
above will cause the van-entity to disappear from the animation while the delay is taking place.
The Delay block allows for the input of a Storage ID, allowing us to create a Storage and place

17

SM RENTALS REPORT
one on the animation, thus creating a place for the animated van-entity to be stored at while the
delay is taking place.
Next, the Assign module allows for the Seats-attribute of the Van-entity to be decreased, to
reflect the updated number of seats available. The Seats-attribute is assigned a new value of
Seats -AG(NG,NSYM(Number of Passengers)), which means current seats available minus the
number of passengers-attribute from the last customer-entity that we just picked up. The van will
then proceed to the decision node again, and the loop will continue.
If the conditions of the decision node are not met, or if the van-entity is unsuccessful in its search
for a customer-entity whose passenger number-attribute meets the search condition requirements,
the van-entity (and all the customer-entity grouped with it) exits the loop.
In the beginning of Van Driver Creation, we also assigned another attribute, Seats Constant, to
the van driver to track whether the van needs to proceed to the Drop Off area after the Rental
Counter, or if they can go directly to T1. The Decision node asks if number of Seats in van <
Seats Constant, meaning whether the number of available seats in the van is less than the number
of seats that are supposed to be in the van. If the number of seats in the van is less than Seats
Constant, this indicates that there is at least one customer-entity in the van, and so it would
therefore route the van-driver to the Drop-off Area to drop off the customer-entity.
Seats Constant is also used to reset the number of seats in the van following the drop-off of the
customer-entities at either the Rental Counter (for arrivals at T1 and T2) or the Drop-off Area
(departures).

18

SM RENTALS REPORT

FURTHER CONSIDERATIONS
It is important to note that there are additional costs to consider when implementing this model
that are not included here. Among the most significant is that with the use of small vans, SM
Rental will be required to purchase more vehicles than if they were to utilize medium or large
vans. There will also be more vehicles to maintain, and this would likely increase the
maintenance costs.
Additionally, with more vehicles used, SM Rentals will need to hire more drivers, which will
cost them additional resources as they train these new employees.
Both of these costs were not included in the model, but should require some consideration before
implementation.
Another consideration should be valuing the marginal increase in satisfaction with different
combinations and costs. While we have ascertained that there is an 8% increase in cost in order
to gain a further 5% satisfaction (from 85% to 90%), it could be illuminating to gain a clearer
picture of what the marginal cost is at different levels. This would require further simulations
and further analysis beyond the scope of this report.

CONCLUSION
SM Rental is best served with the use of a small van and 12 agents and drivers if they wish to
accomplish a satisfaction rate of 85%, assuming they maintain their threshold of 18 minutes in
the system for those arriving and 20 minutes for those departing. This will amount to a total cost
of $1,743.31.

19

SM RENTALS REPORT
If they wish to maintain a 95% satisfaction rate, they will instead require 12 agents, 14 drivers
while still using the small van. The total cost for this combination of resources is $1,932.96.
Again, this holds the satisfaction thresholds of 18 and 20 minutes constant.
These two options detail different approaches for SM Rentals. The difference between the
simulated cost for 90% customer satisfaction and 85% customer satisfaction is $157.93, or an 8%
increase in cost. This will be something that SM Rentals should consider as they debate the
benefits of the extra 5% satisfaction.
Overall, this gives SM Rentals meaningful results that they can apply to improve the
performance of their service in terms of customer satisfaction.

20

SM RENTALS REPORT

APPENDIX
Time Period
4:00
4:15
4:30
4:45
5:00
5:15
5:30
5:45
6:00
6:30
6:45
7:00
7:15
7:30
7:45
8:00
8:15

4:15
4:30
4:45
5:00
5:15
5:30
5:45
6:00
6:15
6:45
7:00
7:15
7:30
7:45
8:00
8:15
8:30

Terminal 1 Terminal 2 Return


4
3
12
8
6
9
12
9
18
15
15
28
18
17
23
14
19
21
13
14
16
10
6
11
4
3
17
10
21
36
14
14
24
16
19
32
15
12
16
7
5
13
3
2
13
4
3
5
2
3
4

Table 1

Table 2

21