Inventory and Supply Chain

Hertz has large inventories Purchases cars from manufactures -Strong affiliation with Ford -Most fleets consist of Ford and its brands -Quality discounts are taken into action because of large order quantities Hertz Determines how frequently to order and in what quantity (lot sizing) -Commit to purchases 12 months in advance -Hertz has a fleet planning horizon of 12- 18 months At the end of rental life the vehicles are either sold or returned to manufacturer Hertz modifies the Economic Order Quantity(EOQ) -large lot orders -replenishment of the inventory is not instantaneous