Compute FIFO, LIFO, Average for the periodic inventory system. Be sure to do a summary table and a partial income statement through gross profit for the inventory valuation method and inventory system.

Answer all 4 of the questions/topics:

Each response must be at least 200-300 words.

1. Communication

Describe and explain the importance of a good integrated information & communication system. What is the importance of communication between departments and what negative impact can a poor system of communication have for a hotel? Discuss 2 important forms of integrated PMS/Communication systems or examples of data information.

2. Future of Hotels

Imagine the hotel room of the future (10 years from now). What does the room look like? What technologies exist in the room? How does it improve the guest experience? What needs and expectations will the future guest have for Accommodation properties? In light of recent health issues what steps will the Accommodations Industry need to address to gain consumer confidence? What will the long term outcome of the industry be after crisis is cleared?

3. Housekeeping

Discuss the importance of the Housekeeping Department. Why is the Rooms Division the greatest asset of the owners? How will you deal with staffing due to lower occupancy? What steps will housekeeping need to take in order to protect our guests and our staff moving forward after the current health crisis?

4. Guest Service

Describe/Explain the following Service Recovery Model and provide an example from the Accommodation Industry for each section. Remember: As discussed in class we have to assess the Fault & Severity. Following this chart answer the following question: -How will you drive business to your hotel once crisis is over?

How will you attract business to your hotel once crisis is over?

Answer the following Questions for a Monopoly Firm.

To complete the table you need to know that the Average Total Cost (ATC) of producing 10 units of output is $980 and that the Total Variable Cost (VC) of producing 11 units of output is $10,400.

a) Fill in the missing information above for this Monopoly Firm. Note there are no numbers for MC and MR when Q=0.

b) At which unit of output does Diminishing Marginal Returns start? Please explain your answer.

c) If this firm produces in the Short Run, determine its profit maximizing/loss minimizing output level. Please explain your answer using MC and MR.

d) If this firm produces in the Short Run, determine its profit maximizing/loss minimizing price.  

e) If this firm produces in the Short Run, state its profit maximizing/loss minimizing profit amount.

f) If this firm shuts down in the Short Run, determine its profit maximizing/loss minimizing profit amount. Please explain your answer.

g) What should this firm do in the Short Run in order to maximize its profits/minimize its loss (produce or shut down)? Please explain your answer using numbers.

h) Explain what this firm should do in the Long Run. Why?

You operate a group of hotels which have seen an increase in the amount of reservations. You currently have a staff of 10 people working in the reservations area. You would like to concentrate on providing the guests with an exceptional stay at the hotels, but the cost of a computerized reservation system would reduce the amount of staff which could service the guests. You have to make some decisions on which decision will be best for the business.

What relevant and irrelevant information do you need to make this decision?

What non-financial information is relevant to make this decision?

Explain how your decision will have an affect on your pricing for the hotel?

The following table shows income and expense data under two different capital structures - 100% equity and 50% debt/50% equity. But there is uncertainty associated with the financial projects as reflected in the three scenarios presented for each capital structure. Use the information in this table to identify the advantages and disadvantages of debt and equity.

You recently returned from a trip to Berlin, Germany. You were there from April 1st to April 4th for a conference on World Tolerance. Before you left Abu Dhabi, on March 30th at 3:30pm, you called your bank, ADCB, and informed the bank that you were traveling and to ensure your credit card would not be blocked in Germany. The bank thanked you for the call, said the card would not be blocked and wished you a pleasant trip. Story About Your Trip in Berlin When you arrived in Berlin at 9am on April 1st, you got a taxi at the airport and took the taxi to the hotel. You paid 30euros for the trip with your credit card. Then you checked into the hotel at noon without problems because you booked and paid for the hotel online before your trip. At 1pm, you decided to go for a walk around Berlin before the conference started the next day. You saw a cute little tea-shop and decided to buy packages of tea for your family and friends. You took your packages to the counter and tried to pay. You were horrified to find out your credit card would not work. You have enough credit on your card and there shouldn’t be anything wrong. You are so embarrassed because you can’t pay for the tea and everyone in line is looking at you. On top of that, you now have 3 more days in Berlin and you can’t access money because your card is blocked. You run back to the hotel and call the bank. They confirm your card is blocked because you are in Germany. You explain that you called before your trip to make sure this would not happen. The bank said, “We are sorry for the inconvenience. There is nothing they can do at the time”. The bank said it would take 3-5 business days to fix the mistake, but that is too long. You are stuck in Berlin without any money. This means you have to take food from the hotel breakfast buffet and hide it in your room for dinner. You need to eat the snacks provided by the conference for your lunch. You must refuse invitations to lunch because you know you can’t pay. Also, you must ask someone at the conference for 10euros to take the subway back to the airport. You are absolutely humiliated. You couldn’t do anything in Berlin because you couldn’t access your credit card. You are so angry at the bank! Your trip was ruined. The only thing you could do in Berlin is to attend the conference and walk around the city and look at the stuff you couldn’t buy. You get home and decide to write a business letter to the customer service manager, Anke Kuse, at ADCB. The bank is in Abu Dhabi at the Airport Road Branch. The PO Box is 55567. You want the bank to refund your flight to Berlin and provide 5000aed in damages because their mistake ruined your trip. The total is 12400aed. This is your Abu Dhabi mailing address. You live in AlBateen in Villa #27 on 17th Street. Write your letter and submit both in the submission box (not comment box) and also upload the document.

You recently returned from a trip to Berlin, Germany. You were there from April 1st to April 4th for a conference on World Tolerance. Before you left Abu Dhabi, on March 30th at 3:30pm, you called your bank, ADCB, and informed the bank that you were traveling and to ensure your credit card would not be blocked in Germany. The bank thanked you for the call, said the card would not be blocked and wished you a pleasant trip.

Story About Your Trip in Berlin

When you arrived in Berlin at 9am on April 1st, you got a taxi at the airport and took the taxi to the hotel. You paid 30euros for the trip with your credit card.  Then you checked into the hotel at noon without problems because you booked and paid for the hotel online before your trip. At 1pm, you decided to go for a walk around Berlin before the conference started the next day.  You saw a cute little tea-shop and decided to buy packages of tea for your family and friends. You took your packages to the counter and tried to pay.  You were horrified to find out your credit card would not work.  You have enough credit on your card and there shouldn’t be anything wrong.  You are so embarrassed because you can’t pay for the tea and everyone in line is looking at you. On top of that, you now have 3 more days in Berlin and you can’t access money because your card is blocked.  

You run back to the hotel and call the bank. They confirm your card is blocked because you are in Germany. You explain that you called before your trip to make sure this would not happen. The bank said, “We are sorry for the inconvenience.  There is nothing they can do at the time”. The bank said it would take 3-5 business days to fix the mistake, but that is too long.  You are stuck in Berlin without any money.

This means you have to take food from the hotel breakfast buffet and hide it in your room for dinner. You need to eat the snacks provided by the conference for your lunch.  You must refuse invitations to lunch because you know you can’t pay. Also, you must ask someone at the conference for 10euros to take the subway back to the airport.  You are absolutely humiliated.  You couldn’t do anything in Berlin because you couldn’t access your credit card.  

You are so angry at the bank! Your trip was ruined.  The only thing you could do in Berlin is to attend the conference and walk around the city and look at the stuff you couldn’t buy. You get home and decide to write a business letter to the customer service manager, Anke Kuse, at ADCB.  The bank is in Abu Dhabi at the Airport Road Branch. The PO Box is 55567. You want the bank to refund your flight to Berlin and provide 5000aed in damages because their mistake ruined your trip. The total is 12400aed.  

This is your Abu Dhabi mailing address. You live in AlBateen in Villa #27 on 17th Street.

Sam's Cat Hotel operates 52 weeks per? year, 5 days per? week, and uses a continuous review inventory system. It purchases kitty litter for ?$11.50 per bag. The following information is available about these bags. Refer to the standard normal table LOADING... for? z-values.

Demand ?= 80 ?bags/week

Order cost? = ?$58?/order

Annual holding cost? = 30 percent of cost

Desired ?cycle-service levelequals90 percent

Lead time? = 2 ?week(s) ?(10 working? days)

Standard deviation of weekly demand? = 16 bags

Current ?on-hand inventory is 310 ?bags, with no open orders or backorders.

a. What is the? EOQ?

?Sam's optimal order quantity is

374 bags. ?(Enter your response rounded to the nearest whole? number.)

What would be the average time between orders? (in weeks)?

The average time between orders is

nothing weeks. ?(Enter your response rounded to one decimal? place.)

b. What should R ?be?

The reorder point is

nothing bags. ?(Enter your response rounded to the nearest whole? number.)

c. An inventory withdrawal of 10 bags was just made. Is it time to? reorder?

d. The store currently uses a lot size of 505 bags? (i.e., Qequals505?). What is the annual holding cost of this? policy?

The annual holding cost is ?$

nothing. ?(Enter your response rounded to two decimal? places.)

What is the annual ordering? cost?

The annual ordering cost is ?$

nothing. ?(Enter your response rounded to two decimal? places.)

Without calculating the? EOQ, how can you conclude from these two calculations that the current lot size is too? large?

A. When Q? = 505?, the annual holding cost is larger than the ordering? cost, therefore Q is too large.

B. Both quantities are appropriate.

C. There is not enough information to determine this.

D. When Q? = 505?, the annual holding cost is less then the ordering? cost, therefore Q is too small.

E. What would be the annual cost saved by shifting from the 505?-bag lot size to the? EOQ?

The annual holding cost with the EOQ is ?$

nothing. ?(Enter your response rounded to two decimal? places.)

The annual ordering cost with the EOQ is ?$

nothing. ?(Enter your response rounded to two decimal? places.)

?Therefore, Sam's Cat Hotel saves ?$

nothing by shifting from the 505?-bag lot size to the EOQ. ?(Enter your response rounded to two decimal? places.)