Inventory Balancing

How many automobiles of each type to stock at each rental location?  Is there a fundamentally different way of operating and optimizing inventory? 

In this project we analysed the country-wide inventory policies of a U.K rental car company and formulated a model and implemented a proof-of-concept of demand forecasting by location and optimal stocking of inventory that takes rebalancing costs into consideration.   We proposed an innovative solution of mobile inventories that can better service customers and showed its benefits using a simulation model.  The company eventually adopted our recommendations.