Question

Rent'r cars is a multisite car rental company in the city. It is trying out a new 'return the car to the location most convenient for you' policy to improve customer service. But this means that the company will have to manage cars across multiple locations. Which of the following is a potential challenge that Rent'r cars may face with this new policy?

1) Difficulty in tracking the availability of cars at different locations
2) Increased customer satisfaction due to the convenience of returning the car to a preferred location
3) Higher operational costs due to the need for car transportation between locations
4) Improved efficiency in car rental operations

Answer 1

Rent'r cars may face challenges such as difficulty in tracking car availability, higher operational costs for car transportation, and potential logistical complexities.

Step-by-step explanation:

With the new 'return the car to the location most convenient for you' policy, Rent'r cars may face the challenge of difficulty in tracking the availability of cars at different locations. This is because managing cars across multiple locations can make it harder to keep track of which cars are available at each location.

Another potential challenge for Rent'r cars with this policy is the higher operational costs due to the need for car transportation between locations. Transporting cars between locations can incur additional expenses such as fuel, maintenance, and labor.

Although the new policy may lead to increased customer satisfaction due to the convenience of returning the car to a preferred location, it does not guarantee improved efficiency in car rental operations. While convenience is a positive aspect, managing cars across multiple locations can introduce complexity and potential logistical challenges, which may not necessarily improve overall efficiency.