Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation Study
Popularity of one-way car rentals poses a challenge to rental car fleet management and brings to focus the importance of a strategic decision for rental car operators: whether to implement a single-fleet or a multifleet model. The single-fleet model allows movement of vehicles between regions, where...
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| Format: | Article |
| Language: | English |
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Wiley
2024-01-01
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| Series: | Journal of Advanced Transportation |
| Online Access: | http://dx.doi.org/10.1155/2024/7764326 |
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| _version_ | 1832548322308521984 |
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| author | John-Carlo Favier Subhamoy Ganguly Timofey Shalpegin |
| author_facet | John-Carlo Favier Subhamoy Ganguly Timofey Shalpegin |
| author_sort | John-Carlo Favier |
| collection | DOAJ |
| description | Popularity of one-way car rentals poses a challenge to rental car fleet management and brings to focus the importance of a strategic decision for rental car operators: whether to implement a single-fleet or a multifleet model. The single-fleet model allows movement of vehicles between regions, whereas the multifleet model does not. It is not obvious whether a single-fleet model is optimal due to its pooling effect, or a multifleet model due to shorter car relocation times. In practice, different rental car operators use different models. To answer this conundrum, we develop two simulation models and compare them in terms of fleet utilisation, branch service level, relocations, and operating profit. We have taken the New Zealand rental car industry as an example as the country consists of two well-defined regions: the North Island and the South Island. The results indicate that a multifleet model has a higher service level at key centres and higher utilisation. At the same time, the single-fleet model is relatively more profitable at the expense of a lower service level in key centres due to vehicles accumulating in the South Island due to a significant volume of one-way southbound travel. Overall, the implementation of either model should depend on the strategic goals of the rental car operator. Our work will be useful for practitioners considering whether or not to pool their fleet when allowing for one-way rentals with subsequent relocation. |
| format | Article |
| id | doaj-art-48eee8c582db4059a76bca74eb55d37c |
| institution | Kabale University |
| issn | 2042-3195 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Advanced Transportation |
| spelling | doaj-art-48eee8c582db4059a76bca74eb55d37c2025-02-03T06:14:52ZengWileyJournal of Advanced Transportation2042-31952024-01-01202410.1155/2024/7764326Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation StudyJohn-Carlo Favier0Subhamoy Ganguly1Timofey Shalpegin2Department of Information Systems and Operations ManagementDepartment of Information Systems and Operations ManagementDepartment of Information Systems and Operations ManagementPopularity of one-way car rentals poses a challenge to rental car fleet management and brings to focus the importance of a strategic decision for rental car operators: whether to implement a single-fleet or a multifleet model. The single-fleet model allows movement of vehicles between regions, whereas the multifleet model does not. It is not obvious whether a single-fleet model is optimal due to its pooling effect, or a multifleet model due to shorter car relocation times. In practice, different rental car operators use different models. To answer this conundrum, we develop two simulation models and compare them in terms of fleet utilisation, branch service level, relocations, and operating profit. We have taken the New Zealand rental car industry as an example as the country consists of two well-defined regions: the North Island and the South Island. The results indicate that a multifleet model has a higher service level at key centres and higher utilisation. At the same time, the single-fleet model is relatively more profitable at the expense of a lower service level in key centres due to vehicles accumulating in the South Island due to a significant volume of one-way southbound travel. Overall, the implementation of either model should depend on the strategic goals of the rental car operator. Our work will be useful for practitioners considering whether or not to pool their fleet when allowing for one-way rentals with subsequent relocation.http://dx.doi.org/10.1155/2024/7764326 |
| spellingShingle | John-Carlo Favier Subhamoy Ganguly Timofey Shalpegin Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation Study Journal of Advanced Transportation |
| title | Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation Study |
| title_full | Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation Study |
| title_fullStr | Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation Study |
| title_full_unstemmed | Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation Study |
| title_short | Optimal Fleet Policy of Rental Vehicles with Relocation: A Simulation Study |
| title_sort | optimal fleet policy of rental vehicles with relocation a simulation study |
| url | http://dx.doi.org/10.1155/2024/7764326 |
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