| The world’s car rental industry started in the early 20th century and now it has about one hundred years of history. The industry provides a lot of convenience to people, increases the capital for buying cars, and reduces the resource waste and damage to the environment. Since the 21 century, the world’s car rental industry has developed vigorously, and with the pace of the world, the Chinese car rental industry is developing rapidly. However, most of our car rental companies are small, and have weak capability against risk. Moreover, they concentrate in Beijing, Shanghai, Guangdong and some eastern coastal areas and expand to whole country gradually. Therefore, many aspects of the industry need to be improved. In this paper, we study the optimal car ordering and service pricing strategy, and hope can give some guidance to the development of Chinese car rental companies.The topic is proposed in this context, and when the ordering quantity is more than marketing demand, there will be inventory risk; when the ordering quantity is less than marketing demand, there will be storage cost. Therefore, it is important to make a proper car ordering quantity. The service price can affect expected demand and the company’s revenue. To improve the economic benefit and strengthen the competiveness of car rental companies, making an efficient car ordering and service pricing strategy has important theoretical and practical meanings.Firstly, based on classical newsboy model, we study multi-stage static ordering strategy. This paper assumes that the stochastic demand for car rental market fits the normal demand. The expected sales will increase with the improvement of ordering quantity and when it reaches a number, the increasing amplitude will decrease. But the purchasing and maintaining expenses are increasing, and the company’s revenue starts to decrease after reaching the peak. Finally, the optimal ordering strategy can be concluded.Moreover, based on classical newsboy model, we study optimal car ordering and service pricing strategy. This paper assumes that the marketing stochastic demand for car rental fits the additive principle, and car rental demand and rental price have monotonous linear decreasing relationship, and then establishes the combined ordering and pricing decision model for car rental companies. When the first-order partial derivatives of total profit function equal to zero, company will get the greatest profit.Furthermore, based on game theory, we use classical newsboy model and study optimal ordering strategy when companies share rental capability. This paper analyze and compare the optimal ordering quantity and total revenue when company share rental capability. Research shows that sharing rental capability strategy can reduce the car ordering quantity and improve their liquid capital. Finally, Pareto improvement is realized and win-win situation is achieved.At last, this paper analyzes and summarizes the main research conclusions and hopes to have guidance to the development of car rental companies. And we point out the research deficiencies and describe future research prospects. |
