Car dealership

Created By: Chase O'Brien, Caleb Johnson, Carson Kern, Harshita Reddy

We worked with LaFontaine Cadillac Buick GMC dealership and applied class concepts to achieve business objectives of lowering total operating costs and increasing customer service level.

Phase 1

Utilized waiting line analysis, proposing 3 solutions to lower cost and increase customer service
Plan C offers the lowest cost and highest customer service level due to decreased customer time spent waiting in line
By implementing the plan C option, the dealership can cut costs by $275 and reduce the time customers wait in line by approximately 85 minutes!

Phase 2

Utilized linear programming, proposing 1 solution to lower cost
Utilizing the basic bay to perform oil changes and tire rotations yields the lowest cost ($625 per week)
By switching all oil changes and tire rotations to bay 1, the company will save approximately $17 weekly!

Comparing phases

Phase 1:

Pros: Considers hourly wages and cost of lost sales, proposes 3 solutions, solutions in this phase will offer better benefits
Cons: Not as easy to implement as phase 2, more cost required to implement

Phase 2:

Pros: Ease of implementation, less upfront initiation cost
Cons: Only considers hourly wage, proposes only a single solution, solution benefits are weaker than phase 1

covid measures

LaFontaine can implement a key drop box in conjunction with online appointments to assist during COVID
Customers place an appointment online, provide their keys to the clerk, and the keys are placed in chronological order

Final recommendation

We recommend phase 1 as a potential solution
Better qualified to accommodate the company's objectives due to its dual resulting tendancy of maximizing cost efficiency and increasing customer service

how to contact us

Chase O'Brien

Supply Chain Management & Small Business Management

Email: chaseo@umich.edu

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