The paper "Critical Fractile " is a perfect example of a management assignment. The critical fractile indicated the seasonal variation in the number of customers that use the hotel rooms in the different months of the year. The variation was because some rooms are overcharged while others have flat rate charged per night. Therefore, the deal between Emmet and Billy Bob has played a great role in narrowing the gap. Indicated making the decision to use the rooms at last. Since some of the rooms were overbooked, it made it possible to cover up the money that would be lost due to no show since no show mains losing money in that night.
Also indicated the best option for the production increase because Emmet and Bill Bod entered into a deal to cover up the loss so that they can minimize it and keep the gains going to the rooms per night. The critical fractile indicated the setting of the target inventory control since there was a possibility of the loss due to no show. Since the target stock was a little bit small, they did not incur a high cost. Selection of the good facility capacity.
Since they were expecting the no show to occur, a better option was taken to overbook some rooms so as to gain some money from overbooking. (4) Where the customers get no room available for use in the night, they become so disappointed because some of the customers are the daily customer and have made that place the number one priority for their everyday use. Others become stranded to the extent that they fail to get another place that suits the standard of the chosen hotel. However, this can be solved by the provision of the extra rooms called reserved individual rooms for an emergency so as to satisfy the needs of the usual customers. Question 5 (1) For the mean of the daily customer sale (normal distribution of 365 days) of 167 makes it a good sales for the year as the level of sales turnover can be high so that average indicates a real sale.
It is possible to make a significant profit as seen from the sales since the rate of turnover can very high hence more sales and profits. For the variation of as the standard distribution of 29 means the changes in the customer demand is low on average making it useful and easy to maintain the client in their buying moods.
The rate of turnover can be high since the customers are willing and able to buy in large quantity and most of the time they need the cakes. The recommendation to maintain the customers quality expectations should be emphasized since this is one of the key techniques in meeting the needs of the clients and maintaining them at a particular place as their preferred distribution point. The duration of the time for placing the order and receiving the requested items (cakes) of 36 days means there is a very high demand due to the majority of the buyers placing their orders.
The benefit of this is more to the supplier since they can have constant supply due to ready demand but on the side of the buyer, they may experience some difficulties in their sales since sometimes they may run out of stock due to long duration of waiting at some ]time they can lose some profit.
This long period of waiting for the product (cakes) can be reduced by creating many outlets so as to meet the demand of many buyers and also to increase their sales and profits.
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