Donna Shader, manager at the Winter Park Hotel, is considering how to restructure the front desk to reach an optmum level of staff efficiency and guest service. Presently, the hotel has five clerks on duty, each with a separate waiting line, during the peak check in time of 3:00 P.M to 5:00 P.M.

Observation of arrivals during this time show that an average of 90 guests arrive each hour (although there is no upward limit on the number that could arrive at any given time). It takes an average of 3 minutes for the front-desk clerk to register each guest.

Donna is considering three plans for improving guest service by reducing the length of time guests spend waiting in line.

The first proposal would designate on employee as a quick service clerk for guests registering under corporate accounts, a market segment that fills about 30% of all occupied rooms. Because corporate guests are preregistered, their registration takes just 2 minutes. With these guests separated from the rest of the clientele, the average time for registering a typical guest would climb to 3.4 minutes. Under plan 1, noncorporate guests would choose any of the remaining four lines.

The second plan is to implement a single line system. All guests could form a single waiting line to be served by whichever of the five clerks became available. This option would require sufficient lobby space for what could be a substantial queue.

The third proposal using an automatic teller machine (ATM) for check-ins. This ATM would provide approximately the same service rate as a clerk would. Given that initial use of this technology might be minimal, Shader estimated that 20% of customers, primarily frequent guests, would be willing to use the machines.

(This might be a conservative estimate if the guests perceive direct benefits from using the ATM, as bank customers do. Citibank reports that 95% of its Manhattan customers use its ATMs.) Donna would set up a single queue for customers who prefer human check-in clerks. This would be served by the five clerks although Donna is hopeful that the machine will allow a reduction to four.

Required:

1. Determine the average amount of time that a guest spends checking in.
2. What is the check in time under each plan?
3. What plan would you recommend.

2. Courtney Newell, manager of the Silver Park Hotel, is considering how to restructure the front desk to improve guest service during the peak check-in hours of 3:00 to 5:00 p.m. At present, the hotel has 5 clerks on duty each with a separate waiting line.

Courtney is considering two plans for reducing the guest’s waiting time. The first proposal would be to implement a single waiting line in which guests would be served by whichever of the 5 clerks becomes available first. Observations of arrivals during the peak check-in time show that a guest arrives on average every 40 seconds. It takes an average of 3 minutes for the front-desk clerk to register each guest.

The second proposal would designate one employee as a “quick-service” clerk for guests registering under corporate accounts, a market segment that comprises about 30% of Silver Park’s guests. Since these guests would be pre-registered, it would take an average of only 0.5 minutes for the front-desk clerk to register them. Under this plan, the non-corporate guests would form a single line and proceed to the first available of the 4 remaining clerks. The average time for registering a non-corporate guest is 3.4 minutes.

Which proposal should Courtney implement? Provide appropriate quantitative evidence to support your recommendation.

1. Courtney Newell, manager of the Silver Park Hotel, is considering how to restructure the front desk to improve guest service during the peak check-in hours of 3:00 to 5:00 p.m.  At present, the hotel has 5 clerks on duty each with a separate waiting line.

Courtney is considering two plans for reducing the guest’s waiting time. The first proposal would be to implement a single waiting line in which guests would be served by whichever of the 5 clerks becomes available first.  Observations of arrivals during the peak check-in time show that a guest arrives on average every 40 seconds.  It takes an average of 3 minutes for the front-desk clerk to register each guest.

The second proposal would designate one employee as a “quick-service” clerk for guests registering under corporate accounts, a market segment that comprises about 30% of Silver Park’s guests.  Since these guests would be pre-registered, it would take an average of only 0.5 minutes for the front-desk clerk to register them.  Under this plan, the non-corporate guests would form a single line and proceed to the first available of the 4 remaining clerks.  The average time for registering a non-corporate guest is 3.4 minutes.

Which proposal should Courtney implement?  Provide appropriate quantitative evidence to support your recommendation.

A quality control activity analysis indicated the following four activity costs of a hotel.

Sales are $7,700,000 for the year. Prepare a cost of quality report.

Present percentage values to one decimal place.

IN JAVA

Write a program that calculates the occupancy rate for each floor of a hotel. (Use a sentinel value and please point out the sentinel in bold.) The program should start by asking for the number of floors in the hotel. A loop should then iterate once for each floor. During each iteration, the loop should ask the user for the number of rooms on the floor and the number of them that are occupied. After all the iterations, the program should display the number of rooms the hotel has, the number of them that are occupied, the number that are vacant, and the occupancy rate for the hotel. Input Validation: Do not accept a value less than 1 for the number of floors. Do not accept a number less than 10 for the number of rooms on a floor.

SAMPLE OUTPUT:

Enter number of floors:
2
Enter total rooms at floor 1:
10
Enter total rooms occupied at floor1:
5
Enter total rooms at floor 2:
10
Enter total rooms occupied at floor2:
5
Total rooms: 20
Total occupied rooms: 20
Hotel occupany: 50.0

Suppose marginal benefit from a hectare of for a public park (assume it is a pure public good) for two groups of consumers (A and B) is given by: MBa = 10 − Q and MBb = (8 – Q)/2 where Q is the number of hectares of the park. To simplify our analysis, assume that there are only 1 consumer of each type. The marginal cost to provide the park is a constant $5.

a) What is the socially efficient number of hectares for the park?

b) Assume that the consumers each makes a voluntary contribution to a fund which will be used to build the park. The size of the park depends on the amount of money collected. How many hectares will be built in the end? Assume both consumers know the marginal cost and marginal benefit function of each type.

Case 1 (Make Vs. Buy)

After recovering from a previous disaster in 2015, Jurassic World Luxury Resort reopened in early 2017, and business is better than ever. Jurassic World’s bioengineering team, led by Dr. Henry Wu, has designed two brand new dinosaurs named the Pepsisaurus and the Tostidodon (sponsored by PepsiCo). Having learned from past mistakes, Jurassic World’s operations manager, Claire Dearing, has insisted on making two state-of-the-art enclosures to ensure that the Pepsisaurus and Tostidodon do not escape their enclosures and wreak havoc on the theme park. Claire is not sure whether Jurassic World should manufacture the enclosures, or pay Hammond Corp $16,650,000 per enclosure to manufacture them for Jurassic World.

Claire has accumulated the following cost information related to the manufacture of the enclosures:

90% of the traceable fixed manufacturing overhead would be avoided if Jurassic World did not manufacture the enclosures. If Jurassic World did not manufacture the enclosures, it could instead use resources to open a new roller coaster ride that would generate $600,000 of margin.

1. Determine the total relevant costs of Jurassic World manufacturing the two enclosures itself. (1 point for the correct answer in the shaded box)

2. Determine the total relevant costs of Jurassic World paying Hammond Corp to manufacture the enclosures. (1 point for the correct answer in the shaded box)

3. Should Jurassic World manufacture the enclosures itself (MAKE) or pay Hammond Corp to manufacture them (BUY)? Circle One. (1 point for the correct answer)

MAKE                                BUY

Case 2 (Special Order)

While Jurassic World is filled to capacity with tourists most of the year, the theme park experiences a lower number of customers during September and October. This is due to the fact that September and October are “rainy season” in Jurassic World’s location—the island of Isla Nublar, off the coast of Costa Rica.

To celebrate their sponsorship of the Pepsisaurus and the Tostidodon, PepsiCo is interested in holding a 3-day, 2-night corporate retreat for 5,000 of its employees at Jurassic world during September. PepsiCo has told Claire that they would pay Jurassic World $200 per employee. This would provide each employee with three days of park admission, three days of meal and drink vouchers, and two nights of lodging. Additionally, PepsiCo wants Jurassic World to treat its employees to behind-the-scenes tours of the park, which would cost a total of $50,000 to plan and facilitate. Due to the timing of the retreat, Jurassic World has ample capacity to host PepsiCo’s employees.

Claire knows that Jurassic World normally charges $850 per person for a 3-day, 2-night admission, lodging, and meal/drink vacation package. The per person cost for this package is 670, as shown below:

Most of the overhead is the fixed cost of running the theme park, and goes towards marketing, administration, dinosaur bioengineering, customer service, grounds keeping and maintenance, dinosaur food, raptor training, and disaster control. However, $35 is variable with respect to the number of customers in the theme park.

4. Determine the incremental revenue to Jurassic World if Claire accepts PepsiCo’s request. (1 point for the correct answer in the shaded box)

5. Determine the incremental cost to Jurassic World if Claire accepts PepsiCo’s request. (1 point for the correct answer in the shaded box)

6. Should Claire accept PepsiCo’s offer? Circle One. (1 point for the correct answer)

YES                                     NO

You are the accountant of White Hotel Berhad, a corporation that engages in the hotel businesses. The corporation is having a high value of buildings and has been using historical cost to measure it. The directors of White Hotel Berhad wanted to continue using the historical cost measurement since they feel that the valuation exercise is costly to the corporation. Prepare a note explaining 4 drawbacks of using the historical cost measurement for buildings.