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Client : Sewell Cadillac Contact: Bob Carpenter (President, GM) 7310 Lemmon Ave Dallas, TX 75209 Team: Quinn Myers Course : EMIS 4395: Senior Design
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Client: Sewell CadillacContact: Bob Carpenter (President, GM)7310 Lemmon AveDallas, TX 75209
Team:
Quinn Myers
Course: EMIS 4395: Senior Design
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Problem Background: THEN
• Pioneer in offering Loaner Cars
• 1 Limitation
• Walk-ins welcomed, encouraged
• Success
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Problem Background: NOW
• Come one, come all
• Loan Cars (LCs) in high demand
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Problem
• Stockouts often occur• Enterprise Supplement
• Customers slow to return LCs
• Customers unhappy with LC avail.
• Current costs too high
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Objectives
• Provide tool: Loan Car Inventory Management
• Suggest process alterations:
• Timely Returns
• Efficient Recycling
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Single Loan Car Cycle
Loan Car
Office
Customer A Customer BService Center
Wash/
Gas
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Loan Car Fleet Cycle
Loan Car
Fleet
New Cars Used Cars
Enterprise
90 Day Cars
12 Month Cars
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Data Received 1
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Data Received 1a
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Data Received 1b
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Data Received 2
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 1: Scorecard
Sewell Loan Car Scorecard
Assumptions: Defaults32500Purchase price of new loan car $32,500.00
1.5%Monthly Depreciation 1.50%37Avg Enterprise rental price per day $37.00
2.75Avg Enterprise days per contract 2.753.56%Interest Rate 3.56%
165Starting Fleet Size 16568%Percent on Contract Monday morning 68%312Working Days/year 312
10# Years in sample (1,2,3,….,10) 1085%LC's returned able to be receycled to new customer in same day 85%
ResultsTotal fleet cost Total rental costs
$10,020,010.00 $712.25
Average Annual Fleet Cost (w/out
Rentals) Average Annual Rental Cost$1,002,001.00 $71.23
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 1a: Scorecard Assumptions
Sewell Loan Car Scorecard
Assumptions: Defaults
32500Purchase price of new loan car $32,500.00
1.5%Monthly Depreciation 1.50%
37Avg Enterprise rental price per day $37.00
2.75Avg Enterprise days per contract 2.75
3.56%Interest Rate 3.56%
165Starting Fleet Size 165
68%Percent on Contract Monday morning 68%
312Working Days/year 312
10# Years in sample (1,2,3,….,10) 10
85%LC's returned able to be receycled to new customer in same day 85%
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2: Simulation
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2a: Demand
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2a: Demand
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2b: Returns
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2b: Returns
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2c: Rentals & Cost
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2c: Rentals & Cost
SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 3: Scorecard Results
Sewell Loan Car Scorecard
Results
Total fleet cost Total rental costs
$10,020,010.00 $712.25
Average Annual Fleet Cost (w/out
Rentals) Average Annual Rental Cost
$1,002,001.00 $71.23
Client: Sewell CadillacContact: Bob Carpenter (President, GM)7310 Lemmon AveDallas, TX 75209
Team:
Quinn Myers
Course: EMIS 4395: Senior Design
