The aim of this case study is to illustrate the sometimes competing demands of effectiveness, efficiency and equity. In particular, it should help you to:

Explain what is meant by key terms such as ‘LYG’, ‘QALY’ and ‘ICER’

Use these terms and the information they represent in a decision-making scenario

Compare and contrast the demands of effectiveness from different perspectives

Scenario You are a member of an area prescribing committee (APC) which is reviewing the treatment options for a cancer which is universally rapidly fatal (usually within months) if not treated. For the purposes of this cases study, please assume the following:

 There is good evidence supporting the effectiveness of three medicines (A, B and C) in improving health outcomes.

 The treatments are mutually exclusive: there is no evidence that patients are better off switching from one to another.

 Effectiveness does not depend on patient or disease characteristics.

 All costs fall within the first year of treatment.

 Costs vary only according to the drug selected, since staff time, etc. are fixed and are the same requirements for each treatment.

 The annual budget available for commissioning treatment is US$500,000.

 The incidence of this cancer in the area covered by your APC is 1,000 new cases each year.

The health economic data are summarized below:

Treatment

A

B

C

Life-Year Gained

A. 0.3

B. 0.6

C. 0.5

Health Utility Index (in each year)

A. 0.8

B. 0.6

C. 0.5

Cost (per patient) A (current practice)

A. $500

B. $1000

C. $800

Question 1: Given the available budget of $500,000 per year, how many people could be treated with each option? Please show your calculation and explain briefly about why the current practice is Treatment A. (20%)

Question 2: Measuring the cost-effectiveness by the incremental cost-effectiveness ratio (ICER), compared with the current practice, which treatment (B or C) is more cost-effective for a hospital use? Please show your calculation and explain briefly. (20%)

Question 3: From a patient perspective, which treatment is the most effective by considering the quality of life? Please show your calculation and explain briefly. (20%)

Question 4: From a society perspective, which treatment generates the greatest health gains given the funds available? Please show your calculation and explain briefly. (20%)

Question 5: Which treatment would you recommend to the area prescribing committee (APC): A, B or C? Please discuss your choice from perspectives of equity, efficiency and effectiveness. (20%)

Answer the following questions:
1. Guests at a busy eight-story four-star hotel are consistently complaining about having
to wait too long for the elevator. At 8:00am, some of the elevators are in use by the
housekeeping department whose associates are going up to begin work on the guest
rooms. At the same time, room service has an elevator blocked off to serve in-room
breakfasts because the kitchen and the banqueting departments are using the service
elevators. Then, at about 10:30 am, the housekeepers use the elevators to go down for
their morning break. Guests have come to you as a front office supervisor to report the
issue.

Question:
The general manager recognises your potential and asks you to come up with
suggestions to take care of the problem/challenge. 20 marks

2. As a front office supervisor, you have realised that a client disagrees with your front
office clerk on a request being made. The client is not happy about the outcome and is
seriously angry. Does that mean that the message has not been properly understood by
the client? Or could it mean something else? Explain 20 marks

ABC Hotel Limited (“ABCHL”) operates a small store selling spa oil. ABCHL sells each unit for $80. Variable costs per unit equal $40. Total fixed costs equal $460,000. ABCHL is currently selling 12,000 units per period. The management would like to earn net income of $80,000.

ABCHL considers whether a promotion campaign to be carried out in next year. The cost of the promotion campaign is $100,000. The expected increase in unit of sales is 20% and 30% if the selling price is $80 and $72 respectively.

(a) Compute:
(i) Contribution margin per unit in dollars.
(ii) Contribution margin percentage.
(iii) Break-even point in dollars.
(iv) Break-even in units.
(v) Sales units necessary to attain desired income of $80,000. (vi) Margin of safety ratio for current operations.

(b) Should ABCHL carry out the promotion campaign in next year. Justify your answer by showing all relevant calculations.

Write a program for hotel booking system using C++

Program Requirement

1. You can write any program based on the title assigned.

2. The program must fulfill ALL the requirements below. The requirements listed below are the MINIMUM requirement. Your program may extend beyond the requirements if needed.

a) Create at least one (1) base class.

b) Create at least two (2) derived classes that inherit from the base class created in 2(a).

c) Create at least one (1) object for each class and one (1) array of objects for one of the class.

d) Create at least one (1) default constructor for every classes.

f) Apply dynamic memory allocation using keyword new and delete for any object or array of objects.

g) Create at least one (1) virtual function.

h) Write sufficient comments to explain your program.

(Note : Only a reasonable level of user input checking is needed. Assume that a user will input text and numbers in good faith. He/she will not purposely enter text into a number field and will not key in non-alphanumeric characters for all text fields.)

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.)

Exercise 17-25 Sales Mix and Quantity Variances (LO 17-3)

The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $47. The a la carte option has a budgeted average price of $36 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $27 and the a la carte option averages $20 per meal in budgeted variable cost. The manager estimates that 2,100 people will order a meal in any month.

For July, the restaurant served a total of 1,900 meals, including 640 buffet options. Total revenues were $30,720 for buffet meals and $49,140 for the a la carte meals.

Required:

a. Compute the activity variance for the restaurant for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

b. Compute the mix and quantity variances for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Exercise 17-25 Sales Mix and Quantity Variances (LO 17-3)

The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $47. The a la carte option has a budgeted average price of $36 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $27 and the a la carte option averages $20 per meal in budgeted variable cost. The manager estimates that 2,100 people will order a meal in any month.

For July, the restaurant served a total of 1,900 meals, including 640 buffet options. Total revenues were $30,720 for buffet meals and $49,140 for the a la carte meals.

Required:

a. Compute the activity variance for the restaurant for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

b. Compute the mix and quantity variances for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Sam's Cat Hotel operates 5252 weeks per? year, 77 days per? week, and uses a continuous review inventory system. It purchases kitty litter for ?$10.7510.75 per bag. The following information is available about these bags. Refer to the standard normal table LOADING... for? z-values.

Demand = 100 bags/weeks

Order cost = $56/order

Annual Holding Cost = 30 percent of cost

Desired cycle-service level =99 percent Lead time = 2 weeks (14 working days)

Standard deviation of weekly demand = 10 bags

Current on-hand inventory is 315 bags with no open orders or backorders

d. The store currently uses a lot size of 495 bags (i.e, Q =495).

What is the annual holding cost of this policy? The annual holding cost is ??? (Enter your response and round to two decimal places)

What is the annual ordering cost? The annual ordering cost is ??? (Enter your respone and round to two decimal places)

Without calculating the EOQ, how can you conclude from these two calucations that the current lot size is too large? Select the correct answer from the multiple choice below.

A. When Q= 495, the annual holding cost is larger than the ordering cost, therefore Q is too large.

B. There is not enough information to determine this.

C. When Q=495, the annual holding cost is less then the ordering cost, therefore Q is too small.

D. Both quantiies are appropriate.

Please answer the following questions for section e.

e. What would be the annual cost saved by shifting from the 495 bag lot size to the EOQ?

The annual holding cost with the EOQ is ??? (Enter your response rounded to two decimal places)

The annual ordering cost with the EOQ is ??? (Enter your response rounded to two decimal places)

Therefore, Sam's Cat Hotel saves ??? by shifting from the 495 bag lot size to the EOQ? (Enter your response rounded to the nearest two decimal places)

​Sam's Cat Hotel operates 52 weeks per​ year, 6 days per​ week, and uses a continuous review inventory system. It purchases kitty litter for ​$11.00 per bag. The following information is available about these​ bags:

Demand=80 ​bags/week

Order cost=$55.00​/order

Annual holding cost=40 percent of cost

Desired ​cycle-service level=80 percent

Lead time=5 weeks ​(30 working​ days)

Standard deviation of weekly demand=15 bags

Current ​on-hand inventory is 320 ​bags, with no open orders or backorders.

a. Suppose that the weekly demand forecast of 80 bags is incorrect and actual demand averages only 55 bags per week. How much higher will total costs​ be, owing to the distorted EOQ caused by this forecast​ error?

The costs will be ​$___ higher owing to the error in EOQ. ​(Enter your response rounded to two decimal​ places.)

b. Suppose that actual demand is 50 bags but that ordering costs are cut to only $13.00 by using the internet to automate order placing. However, the buyer does not tell anyone, and the EOQ is not adjusted to reflect this reduction in S. How much higher will total costs be, compared to what they could if the EOQ were adjusted?

The costs will be $____ higher owing to the error EOQ.

Sam's Cat Hotel operates 52 weeks per​ year, 6 days per​ week, and uses a continuous review inventory system. It purchases kitty litter for ​$11.00 per bag. The following information is available about these​ bags:

Demand=80 ​bags/week

Order cost=$55.00​/order

Annual holding cost=40 percent of cost

Desired ​cycle-service level=80 percent

Lead time=5 weeks ​(30 working​ days)

Standard deviation of weekly demand=15 bags

Current ​on-hand inventory is 320 ​bags, with no open orders or backorders.

a. Suppose that the weekly demand forecast of 80 bags is incorrect and actual demand averages only 55 bags per week. How much higher will total costs​ be, owing to the distorted EOQ caused by this forecast​ error?

The costs will be ​$___ higher owing to the error in EOQ. ​(Enter your response rounded to two decimal​ places.)

b. Suppose that actual demand is 50 bags but that ordering costs are cut to only $13.00 by using the internet to automate order placing. However, the buyer does not tell anyone, and the EOQ is not adjusted to reflect this reduction in S. How much higher will total costs be, compared to what they could if the EOQ were adjusted?

The costs will be $____ higher owing to the error EOQ.