When estimating fleet size, how much above average daily demand should be accounted for?

Estimating fleet size involves accounting for variability in demand to ensure that the fleet can accommodate peak usage and unforeseen circumstances. Considering an additional 25% above average daily demand provides a buffer that helps mitigate the risks associated with fluctuations in passenger numbers, unexpected maintenance needs, and other operational variables.

Using this percentage allows for a more reliable estimate that can handle busy times, ensuring there are sufficient resources to meet customer expectations and maintain service quality. A conservative increase, like 25%, is often recommended as it strikes a balance between being adequately prepared for demand spikes without over-investing in fleet capacity, which could lead to unnecessary costs when demand is stable or low.

This level of additional capacity is crucial for businesses in the transportation and service industries, as it directly affects customer satisfaction and operational efficiency. The other percentages may not provide a sufficient buffer to effectively manage the uncertainties faced in fleet operations.