Page 551 -

OTHER SIMULATION ISSUES 531

season, Dunes averaged selling approximately 14 In offering these replay options, Dunes’ first prior-
of the 20 available afternoon tee times. The average ity will be to sell full-price afternoon advance reser-
income from afternoon green fees and cart fees has vations. If the demand for replay tee times exceeds
been £10 240. However, the average of six unused the number of afternoon tee times available, Dunes
tee times per day resulted in lost revenue. will post a notice that the course is full. In this case,
In an effort to increase the sale of afternoon tee any excess replay requests will not be accepted.
times, Dunes is considering an idea popular at other
golf courses. These courses offer foursomes that play Managerial Report
in the morning the option to play another round of golf
Develop simulation models for both replay options.
in the afternoon by paying a reduced fee for the
Run each simulation for 5000 trials. Prepare a report
afternoon round. Dunes is considering two replay
that will help the management of Dunes Golf Course
options: (1) a green fee of £25 per player plus a cart
decide which replay option to implement for the
fee of £20 per player; (2) a green fee of £50 per player
upcoming spring golf season. In preparing your
plus a cart fee of £20 per player. For option 1, each
report be sure to include the following:
foursome will generate additional revenues of £180; for
option 2, each foursome will generate additional reve- 1 Statistical summaries of the revenue expected
nues of £280. The key in making a decision as to what under each replay option.
option is best depends upon the number of groups
2 Your recommendation as to the best replay option.
that find the option attractive enough to take the replay
3 Assuming a 90-day spring golf season, what is
offer. Working with a consultant who has expertise in
the estimate of the added revenue using your
statistics and the golf industry, Dunes developed prob-
recommendation?
ability distributions for the number of foursomes
requesting a replay for each of the two options. These 4 Discuss any other recommendations you have
probability distributions are shown in Table 12.13. that might improve the income for Dunes.
Table 12.13 Probability Distributions for the Number of Groups Requesting a Replay

Option 1: £25 per person + Cart Fee Option 2: £50 per person + Cart Fee
Number of Foursomes Number of Foursomes
Requesting a Replay Probability Requesting a Replay Probability
0 0.01 0 0.06
1 0.03 1 0.09
2 0.05 2 0.12
3 0.05 3 0.17
4 0.11 4 0.20
5 0.15 5 0.13
6 0.17 6 0.11
7 0.15 7 0.07
8 0.13 8 0.05
9 0.09
10 0.06

CASE PROBLEM 2 Effortless Events

ffortless Events, operates a chain of beverage snacks and party supplies without getting out of their
E supply stores in Europe. Each store has a single cars. When a new customer arrives at the store, the
service lane; cars enter at one end of the store and exit customer waits until the preceding customer’s order is
at the other end. Customers pick up soft drinks, beer, complete and then drives into the store for service.

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has
deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.