Case Notes/Answers
Elite Rent-a-Car, By Gregory Zaric, Jordan
Mitchell
Discussion Questions:
1. For your analysis, initially focus on the Sport and Convertible
category only, and assume that all cars are leased. Once this analysis
has been done you can think about how to broaden the analysis to
include all issues discussed in the case.
2. In order to break even, how many days must each category of
Elite’s cars be rented out per month?
3. How many cars in Sport & Convertible and 4-Wheel Drive would
you recommend that Zanoletti keep on the lot?
4. How should her fleet be divided up among purchases, leases and
long-term rentals?
, 807E11
Teaching Note
ELITE RENT-A-CAR
SYNOPSIS
In early 2006, Graziella Zanoletti, the president and founder of Elite Rent-a-car, a luxury car rental
agency with 12 offices throughout Europe, needs to plan the fleet of cars for the upcoming summer
season. In her fleet decisions, she has to balance utilization versus the possibility of a having to turn away
clients if they demand a specific car.
TEACHING OBJECTIVE
This case covers the following topics:
• Data analysis
• Construction and interpretation of a histogram
• Estimation of probabilities from a histogram
• Breakeven analysis
The case can also be used to introduce the newsvendor model.
SUGGESTED ASSIGNMENT QUESTIONS
1. For your analysis, initially focus on the Sport and Convertible category only, and assume that all cars
are leased. Once this analysis has been done you can think about how to broaden the analysis to
include all issues discussed in the case.
2. In order to break even, how many days must each category of Elite’s cars be rented out per month?
3. How many cars in Sport & Convertible and 4-Wheel Drive would you recommend that Zanoletti keep
on the lot?
4. How should her fleet be divided up among purchases, leases and long-term rentals?
Elite Rent-a-Car, By Gregory Zaric, Jordan
Mitchell
Discussion Questions:
1. For your analysis, initially focus on the Sport and Convertible
category only, and assume that all cars are leased. Once this analysis
has been done you can think about how to broaden the analysis to
include all issues discussed in the case.
2. In order to break even, how many days must each category of
Elite’s cars be rented out per month?
3. How many cars in Sport & Convertible and 4-Wheel Drive would
you recommend that Zanoletti keep on the lot?
4. How should her fleet be divided up among purchases, leases and
long-term rentals?
, 807E11
Teaching Note
ELITE RENT-A-CAR
SYNOPSIS
In early 2006, Graziella Zanoletti, the president and founder of Elite Rent-a-car, a luxury car rental
agency with 12 offices throughout Europe, needs to plan the fleet of cars for the upcoming summer
season. In her fleet decisions, she has to balance utilization versus the possibility of a having to turn away
clients if they demand a specific car.
TEACHING OBJECTIVE
This case covers the following topics:
• Data analysis
• Construction and interpretation of a histogram
• Estimation of probabilities from a histogram
• Breakeven analysis
The case can also be used to introduce the newsvendor model.
SUGGESTED ASSIGNMENT QUESTIONS
1. For your analysis, initially focus on the Sport and Convertible category only, and assume that all cars
are leased. Once this analysis has been done you can think about how to broaden the analysis to
include all issues discussed in the case.
2. In order to break even, how many days must each category of Elite’s cars be rented out per month?
3. How many cars in Sport & Convertible and 4-Wheel Drive would you recommend that Zanoletti keep
on the lot?
4. How should her fleet be divided up among purchases, leases and long-term rentals?
