# Essay on Statewide Development Corporation

1061 Words Apr 23rd, 2012 5 Pages
Case 6
Statewide Development Corporation
PROF. Dennis Berino
Submitted by:
Group 1
Lourdes Cid
Harold Cruz
Carmela Magday
Christine Marie Pagdanganan
Case background:
Statewide Development Corporation has built a very large apartment complex in Gainesville, Florida. As part of the student-oriented marketing strategy that has been developed, it is stated that if any problems with plumbing or air conditioning are experienced, a maintenance person will begin working on the problem within one hour. If the tenant must wait more than one hour for the repairperson to arrive, a \$10 deduction from the monthly rent will be made for each additional hour of time waiting. An answering machine will take the calls and record the time of the
Assumptions: 1. Frequency of calls 2. Calls are made during weekends 3. Parts are available on site since only 10% of calls need a trip to the supply house. 4. 24 hours of continuous repair 5. Work shift does not affect repair work 6. No rent deduction if worker arrives exactly one hour of call. Rent deduction will only start on the first minute i.e. 9:01 7. For simplicity, time of work starts 12:00 AM. 8. With back-up worker during peak hours for a lower rate per hour
Quantitative methods used to solve the problem:
Microsoft Excel’s Random Function is used to simulate repair works in the apartment. From the random numbers, it generates the time of call and the time of repair from the given probabilities by using the VLOOKUP command. The time that the worker can start and the waiting time of callers are then determined to know if an additional worker is needed.
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Alternative Course 1: One Worker
One worker service cost = 18.5 working hours x \$20 per hour = \$370.00
Total Deductions from five callers of Calls 9 to 12 and 14 = \$60.00
Total cost = Service cost + deduction from rent = \$370.00 + \$60.00
= \$430.00
Alternative Course 2: Two workers
Worker A service cost = 18.5 working hours x \$20 per hour = \$370.00
Worker B service cost = 5 working hours x \$10 per hour = \$50.00
Worker B will be on per call basis and needed only during the peak hours like

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