Optimization number of car rental to fulfil the demand using simulation technique: A case study of ABC Car Rental Company

Abstract

This study involves the car rental system of ABC Car Rental Company in Shah Alam. The car rental company faces challenges to meet customer demand. They always face shortage or too many vehicles unused on certain days on weekdays, but they are fully booked on the weekend. So, they need a guideline to manage their car rental to meet their customer demand. This company also faces a problem such as a customer returned the car late as it will affect the next customer. When this problem happens regularly, it affects the company. To find a solution to this problem, simulation model is built using Excel spreadsheet. The simulation model is ran for ten 30-day to generate the result. The result of simulation contains customer not served, total sales and average number of the unused car. From this simulation model, 20 alternatives are identified. Then scoring model will be used to find the optimal number of car rental. The findings from this study will serve as a guideline for the car rental company to manage their number of cars for their business. The car rental owner needs to optimize their car rental fleet so that they can increase their business operations performance and managed their inventory of cars prudently.