Client Course Sewell Cadillac Contact Bob Carpenter President
Client: Course: Sewell Cadillac Contact: Bob Carpenter (President, GM) 7310 Lemmon Ave Dallas, TX 75209 EMIS 4395: Senior Design Team: Quinn Myers
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 Wash / Gas Loan Car Office Customer A Customer B Service Center SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Loan Car Fleet Cycle 12 Month Cars 90 Day Cars Loan Car Fleet New Cars Enterprise Used 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 1 a SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Data Received 1 b 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: 32500 Purchase price of new loan car 1. 5% Monthly Depreciation 37 Avg Enterprise rental price per day 2. 75 Avg Enterprise days per contract 3. 56% Interest Rate 165 Starting Fleet Size 68% Percent on Contract Monday morning 312 Working Days/year 10 # Years in sample (1, 2, 3, …. , 10) 85% LC's returned able to be receycled to new customer in same day Results Total rental costs $712. 25 Total fleet cost $10, 020, 010. 00 Average Annual Fleet Cost (w/out Rentals) $1, 002, 001. 00 Defaults $32, 500. 00 1. 50% $37. 00 2. 75 3. 56% 165 68% 312 10 85% Average Annual Rental Cost $71. 23 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 1 a: Scorecard Assumptions Sewell Loan Car Scorecard Assumptions: 32500 Purchase price of new loan car 1. 5% Monthly Depreciation 37 Avg Enterprise rental price per day 2. 75 Avg Enterprise days per contract 3. 56% Interest Rate 165 Starting Fleet Size 68% Percent on Contract Monday morning 312 Working Days/year 10 # Years in sample (1, 2, 3, …. , 10) 85% LC's returned able to be receycled to new customer in same day Defaults $32, 500. 00 1. 50% $37. 00 2. 75 3. 56% 165 68% 312 10 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 2 a: Demand SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2 a: Demand SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2 b: Returns SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2 b: Returns SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2 c: Rentals & Cost SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Tool 2 c: 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 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010
Client: Course: Sewell Cadillac Contact: Bob Carpenter (President, GM) 7310 Lemmon Ave Dallas, TX 75209 EMIS 4395: Senior Design Team: Quinn Myers
- Slides: 22
