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Medium Opportunity Assessment Operations

Snow Big Deal

#Transportation & Logistics
ProHub Comment

This case tests cost-benefit analysis and capacity planning under constraints. It requires candidates to compare two strategic options (raise rental rates vs. purchase equipment), perform break-even analysis, and consider both financial metrics and operational risks. The case teaches practical decision-making in procurement and vendor management.

Estimated Time 15 minutes
Difficulty Medium
Source Tuck
50 / 100
Our client is the New Hampshire Department of Transportation (NH DOT), a state government entity that strives to provide “safe and secure mobility and travel options for all of the state’s residents, visitors and goods movement.” Managing snowfall is a major responsibility of NH DOT. Every year, they rent privately-owned equipment to plow the roads. NH DOT is currently negotiating plow contracts for 2023 but is facing a shortage in equipment to rent. This is resulting in an increase in projected response time and in number of anticipated “beats” covered by each truck. The DOT have hired our firm to help address this issue and to plan for the years to come.

Clarifying Information

  1. Preliminary estimates indicate that there will be 300 machines available this season.
  2. NH DOT do not currently own any plows
  3. Plow rental fee includes labor costs. Rental fees are negotiated each season.
  4. Responsible for NH and NH routes into neighboring states
  5. Beat = Unique Route that needs to be plowed
  6. Response Time = Time needed to completely plow a beat
  7. NH Rents 3 classes of snowplows that differ in size and specifications (Assume all snowplows are the same for the purpose of this case)