QueueYield 11 01

Pagina 1

Operations Management Exam –January 11th, 2022 page 1/1 OPERATIONS MANAGEMENT EXAM Prof. Alberto Portioli Staudacher, Marco Taisch, Matteo Rossini January 11th, 2023 Yield-Queue Exercise (9 points) The Love4Planet foundation is organizing a fundraising event with a social dinner that can hold up to 1000 guests. The event consists of a short documentary about the education in Tanzania at primary and secondary schools, a showroom with a shop where people can purchase some products as gifts for their friends and families and the social dinner. Considering that all the revenues will be donated to the Tanzanian population to create a new school, Love4Planet wants to maximize the revenues from this event so they decided to offer two types of tickets: a discounted one that people can buy from 90 days to 30 days before the event at 200 € and a full price one that people can buy from 29 days to the day before the event at 350 €. They can certainly fill the venue selling only discounted tickets. The demand for full-price tickets follows a normal distribution with a mean of 500 and a standard deviation of 100. The company will pay the social dinner to a catering company, a week after the event, 50 € for each meal consumed by discounted and 70 € for each meal consumed by full-price tickets. Based on the historical data they know that 80% of the participants (both discounted and full) will take the meal. Only to full- price participants, the company will give a framed poster of a Tanzanian landscape that costs 35 € each. The poster will be bought before the event. Moreover, thanks to the support of National Geographic, Love4Planet decided to donate to each participant a souvenir. Respectively, the small bag souvenir for Discounted costs 45 € each, while the big bag for Full…