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COMPANY� Started in 1990

� Last year revenue $15mn

� One of the national computer rental companies

� Purchased CPU·S, monitors, printers and other peripherals andrented them for long/short term

CUSTOMERS� Large corporate clients who replaced their machines each year to

have cutting edge technology at their disposal

� Consulting firms & small business customers (2-4 Months)

� Trade shows Participants for short term rentals for their shows

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COMPETENCIES� Short Lead times (1-2 days)

� Quick, accurate delivery and installation

� Quick response

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PLACING ORDER� Customer calls Sales Representative and places order

� Sales Rep assigns a particular unit to the customer

� Unit removed from Available for rent (status 20) inventory andplaced on Reserve status (status 32)

PREPARATION� Order routed to Quality Assurance and Picking

� Technician in Configuration section configures the equipment

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SHIPPING� Product shipped to customer

� Shipping cost is $25 per unit

RECEIVE PRODUCT� Units received at Mega center in the Receiving department

� Each unit classified as defective (status 40) or not defective(status 24)

� Defective items sent to Repairs

� Not defective items sent to P re-configuration

� 30% units ² Defective and 70% - Not defective

� 15% of status 24 units also defective

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REPAIRING� Defective unit in Repairs (status 40) is sent to Parts (status 41)

� Order for defective part placed with the supplier

� One week is time taken for part to arrive

� Part taped on top of the unit (status 42)

� Average cost for repairing defective unit is $150

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Available forRent

(Status 20)ReserveStatus

(Status 32)

 

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( Status 24)

NOTDEFECTIVE(70%)

DEFECTIVE(30%)

DEFECTIVE (15%)

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UTILISATIONU tilisation= Number of Units on rent /  Number of units owned by

CRU

U tilisation= Inventory on rent/ Total inventory owned by CRU

� Utilization at CRU  - over 50% for the past several years

� Each unit in the CRU inventory had an average purchase priceof $1,000 and CRU had followed a straight-line depreciation

over 36 months