Which of the following statements is NOT a correct guide to adjusting fleet size in
January in Scenario B.2 of the pricing simulation? Choose the best answer.
You should increase fleet size to give you maximum flexibility in the quarter Jan-March.
Because you know that demand is constant throughout the year, the largest fleet size you
should consider for January is the larger of December's weekday or weekend orders.
If you set January fleet size equal to the smaller of December's weekday or weekend orders,
you can eliminate the resulting unfilled orders by raising price for the period (weekday or
weekend) that has unfilled orders. This approach will increase profits if the inventory
management cost savings of the smaller fleet exceed the lost revenues having fewer cars to
rent.
Even though the optimal prices you determined for December would be optimal for the rest
of the year at the original fleet size, you should test much lower fleet sizes to find the point
where inventory management cost savings from reducing the fleet size are just offset by
reduced revenues.