I really want to learn how to solve problems like this, but I really do not know where to start and am a novice with maths and operational research questions. I always find that i learn best by being told the step by step method of how to solve it, and then I can try it on different scenarios etc.
Would anyone be so kind as to break it down step by step as to how you would solve this:
EO-Car Hire needs to decide what qty of vehicles to have available at their car rental locations at different points throughout year. The managers want to know how many vehicles to have available for bank holiday in at the Birmingham branch. Based on previous experience and figures, the branch is expected to need between 40 and 50 cars inclusive, with equal probabilitie
s. The car rental company needs to work out the number of vehicles to have available before to the bank holiday. A vehicle can be transported to the branch in Birmingham for £100 per vehicle and rent the vehicle to a customer for £200. But, if they have a surplus of vehicles after the bank holiday, it will incur an insurance cost of £80 per vehicle.
Would anyone be so kind as to break it down step by step as to how you would solve this:
EO-Car Hire needs to decide what qty of vehicles to have available at their car rental locations at different points throughout year. The managers want to know how many vehicles to have available for bank holiday in at the Birmingham branch. Based on previous experience and figures, the branch is expected to need between 40 and 50 cars inclusive, with equal probabilitie
s. The car rental company needs to work out the number of vehicles to have available before to the bank holiday. A vehicle can be transported to the branch in Birmingham for £100 per vehicle and rent the vehicle to a customer for £200. But, if they have a surplus of vehicles after the bank holiday, it will incur an insurance cost of £80 per vehicle.