Dynamic Pool Segmentation Model and Algorithm in the Car Rental Industry

Abstract

Pool segmentation is an essential step in the logistics management process for large-scale car rental business. Its main function involves dynamic decisions about pools clustering and regional logistics management centers selecting, whose goal is to optimize fleet utilization and improve the logistics management efficiency. According to developing mode of car rental enterprises and layout of leasing sites, a three-tier structure is presented to describe the logistics management relations among each leasing sites. Based on the logistics operation characteristics and practical administration demand, a dynamic model and its algorithm are proposed for pool segmentation in the car rental industry. A case study shows that the proposed methodology is feasible and effective.