Parameters

Table 25.5 shows the parameters that are used in this example.

Table 25.5: Parameters

Parameter Name

Interpretation

day_name[day]

Name of day

num_days

Number of days in periodic planning horizon

demand[depot,day]

Estimated number of cars demanded per depot per day

length_prob[length]

Probability of each rental length

cost[length]

Marginal cost (in pounds) to company for each rental length

price_same[length]

Rental price (in pounds) if the car is returned to the same depot

price_diff[length]

Rental price (in pounds) if the car is returned to a different depot

transition_prob[i,j]

Transition probability from depot $i$ to depot $j$

transfer_cost[i,j]

Cost (in pounds) to transfer a car from depot $i$ to depot $j$

repair_capacity[depot]

Upper bound on number of cars per day repaired at each depot

opportunity_cost_per_week

Opportunity cost (in pounds) per week of owning a car

transfer_length

Number of days required to transfer a car from depot to another

repair_length

Number of days required to repair a car

damage_prob

Probability that a car is returned damaged

damage_charge

Charge (in pounds) to customer for returning a car damaged

saturday_discount

Discount (in pounds) for hiring on Saturday and returning on Monday

rental_price[i,j,day,length]

Price (in pounds) to rent a car at depot $i$ and return to depot $j$ for each starting day and length

max_length

$\max \limits _{\text {length} \in \text {LENGTHS}} \text {length}$