IEN442: Matlab Assignment 3 CTMC Queuing System Case Study Cars-For-You is a sma
ID: 3864629 • Letter: I
Question
IEN442: Matlab Assignment 3 CTMC Queuing System Case Study Cars-For-You is a small used car dealership that buys and sells used cars. It generally sells a car at a 10% markup over its purchase price. It deals only in five models, labeled 1,2,3,4 and 5. Its parking lot can hold at most 40 cars at a time. Table 1 shows the purchase price, the weekly supply of used cars to the dealer at the price, the selling price, and the weekly demand for the used cars at that price for the five different models. Table 1: Data for Cars-For-You used car dealer Purchase Price Supply Selling Price Demand (S Carsweek Cars week Model 300000 20 8800 10800 112 11800 110 14 17050 15 15500 4 180000 119800 22000 115 2400 12 The dealer currently follows a static stocking policy of reserving eight spaces for each model. Thus the dealer will not buy a car of model 1 if there are already eight cars of that model in his lot. The dealer's son feels that they should allocated spaces to the model based on their supply, demand, and profitability. For example, he feels that the number of spaces allocated to a model should equal the smaller of the weekly supply and demand, and the spaces should be allocated to the most expensive (and hence the most profitable models first. This leads him to suggest 12 spaces for model 5, 7 for model 4, 14 for model 3, 7 for model 2, and none for model 1. However, he also knows that this does not sound right and that further analysis is needed to find the optimal stocking policy Let us say that Cars-For-You hires you for an analysis and recommendation. How would you analyze the system (provide the system model)? How much can you charge the firm for you analysis? What would your end recommendation be?Explanation / Answer
The business model proposed by the son is very impressive and is more profitable and is practical to a far greater extint as compared to the existing model.
The damand for car model 3 is more than the supply, so the selling company can gain more profit if they have more slots for the same.
Although the car model 1 has been sold 16/20 but the profit margin is less, so the number of slots can be decreased but not totally eliminated.
I would charge $200 for a comprehensive firm analysis.