case for adoption of yield management
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Ana Chavarria, front office manager at The Times Hotel, has completed a yield management
seminar at Keystone University and is preparing an argument to adopt this concept at The
Times Hotel to present to Margaret Chu, general manager. She begins by com- piling a
history of room occupancy and ADRs, which she hopes will reveal areas in which yield management could help. She prepares an electronic spreadsheet that lists rooms sold with corresponding room rates and correlates the data to tourism
activities in the area. Ana sends an analysis of revenue realized and revenue potential to Ms. Chu
for review prior to their discussion.
After reviewing the analysis, Ms. Chu concludes, “This is just another scam; the industry is slow to
adopt this,” and disregards the entire report. She knows that occupancy percentage, ADR, and
RevPAR are all that you need to be efficient today, so why change?
Ana passes Ms. Chu in the lobby, and Ms. Chu indicates her distrust of the yield management
concept but says she will listen to Ana’s presentation to- morrow.
What tips could you give Ana to help her present a sound case for adoption of yield management?
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