Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 13, Problem 2VC
Summary Introduction
Case summary:
Many companies including Company OM tried to implement dynamic pricing in their ticketing system. The dynamic pricing based on the popularity and the number of games is as follows:
| Popularity rating of opponent | Number of games | Price |
| Tier I | 3 | $187 |
| Tier II | 3 | $170 |
| Tier III | 4 | $85 |
| Tier IV | 6 | $75 |
| Tier V | 14 | $60 |
| Tier VI | 9 | $44 |
| Tier VII | 6 | $40 |
| Average | 45 | $68 |
Company OM has a capable revenue management technique. It follows three different types of pricing strategy, which are the setting price during the beginning of the season and do not change throughout the season, setting a price based on the popularity of an opponent, and pricing the tickets based on the projected demand and the changing based on the actual market demand.
Person P and Person D of Company OM use different tools to change the seat price based on the demand. Company OM would provide offer prices and seats at a prime rate in the existing games.
To determine: The change in the profit contribution for the 45-game season change.
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1) View the video Service Processing at BuyCostumes (10.41 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapter 3) after watching this video. (viddler.com/embed/a6b7054c)
Note: As a rough guideline, please try to keep the written submission to one or two paragraphs.
2) Orkhon Foods makes hand-held pies (among other products). The firm’s weekly sales of hand-held pies over the past seven weeks are given in the table. The firm’s operations manager, Amarjargal, wants to forecast sales for week 8.
Weeks
Sales of hand-held pies(000s)
1
19
2
18
3
17
4
20
5
18
6
22
7
20
Forecast the week 8 sales using the following approaches:
a) Naïve approach
b) 5-month moving average
c) 3-month weighted moving average using the following weights: 0.50 for week 7, 0.30 for week 6, and 0.20 for week 5.
d) Exponential smoothing using a smoothing constant of 0.30, assume a…
Chapter 13 Solutions
Operations Management
Ch. 13 - Prob. 1DQCh. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Question: 7. What is level scheduling? What is the...Ch. 13 - Question: 8. Define mixed strategy. Why would a...Ch. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Question: 11. What is the relationship between the...Ch. 13 - Prob. 12DQCh. 13 - Question: 13. What are major limitations of using...Ch. 13 - Prob. 14DQCh. 13 - Question: 13.1 Prepare a graph of the monthly...Ch. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Question: 13.10 The SOP team (see Problem 13.9)...Ch. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Question: 13.14 Jerusalem Medical Ltd., an...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Question: 13.18 Jose Martinez of El Paso has...Ch. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 1CSCh. 13 - Prob. 2CSCh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Question: 3. What are some concerns the team needs...
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