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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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Presentation on theme: "Client: Sewell Cadillac Contact: Bob Carpenter (President, GM) 7310 Lemmon Ave Dallas, TX 75209 Team: Quinn Myers Course: EMIS 4395: Senior Design."— Presentation transcript:

1 Client: Sewell Cadillac Contact: Bob Carpenter (President, GM) 7310 Lemmon Ave Dallas, TX 75209 Team: Quinn Myers Course: EMIS 4395: Senior Design

2 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 Pioneer in offering Loaner Cars 1 Limitation Walk-ins welcomed, encouraged Success

3 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Problem Background: NOW Come one, come all Loan Cars (LCs) in high demand Come one, come all Loan Cars (LCs) in high demand

4 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 Stockouts often occur Enterprise Supplement Customers slow to return LCs Customers unhappy with LC avail. Current costs too high

5 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Objectives Provide tool: Loan Car Inventory Management Suggest process alterations: Timely Returns Efficient Recycling Provide tool: Loan Car Inventory Management Suggest process alterations: Timely Returns Efficient Recycling

6 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Single Loan Car Cycle Loan Car Office Customer A Customer B Service Center Wash / Gas Wash / Gas

7 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

8 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Data Received 1

9 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Data Received 1a

10 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Data Received 1b

11 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Data Received 2

12 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 1: Scorecard Sewell Loan Car Scorecard Assumptions:Defaults 32500Purchase price of new loan car $32,500.00 1.5%Monthly Depreciation1.50% 37Avg Enterprise rental price per day $37.00 2.75Avg Enterprise days per contract2.75 3.56%Interest Rate3.56% 165Starting Fleet Size165 68%Percent on Contract Monday morning68% 312Working Days/year312 10# Years in sample (1,2,3,….,10)10 85%LC's returned able to be receycled to new customer in same day85% Results Total fleet costTotal 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

13 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 Depreciation1.50% 37Avg Enterprise rental price per day $37.00 2.75Avg Enterprise days per contract2.75 3.56%Interest Rate3.56% 165Starting Fleet Size165 68%Percent on Contract Monday morning68% 312Working Days/year312 10# Years in sample (1,2,3,….,10)10 85%LC's returned able to be receycled to new customer in same day85%

14 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 2: Simulation

15 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 2a: Demand

16 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 2a: Demand

17 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 2b: Returns

18 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 2b: Returns

19 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 2c: Rentals & Cost

20 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 2c: Rentals & Cost

21 SMU EMIS Senior Design: Sewell Cadillac: Quinn Myers: May 2010 Tool 3: Scorecard Results Sewell Loan Car Scorecard Results Total fleet costTotal 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

22 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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