HTM 3120 Lecture Notes - Lecture 12: Quantile, Normal-Form Game, Overselling

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 3120
• Professor: Mark Holmes

Document Summary

Weekly topics: managing capacity and demand, scheduling, overbooking (payoff matrix and critical fractile) Managing capacity and demand: variable and unpredictable demand is characteristic of most services, customer induced variability, arrival rates are not uniform, capability of customers varies Strategies for matching capacity and demand for services. Adapt to customer skill levels target customers based on capability. Consideration for leveling capacity: segmenting demand, business vs. leisure travelers, price-sensitive vs. time sensitive, walk-ins vs. appointments. Chase (react to) demand: daily work shift scheduling, forecasting demand, calculate corresponding labour hours. Increase / decrease schedule with full or part time employees: actions, use of computer-optimized scheduling (linear programming, labour scheduling histogram heuristic. Macdonald"s restaurant has the following requirements for front-line servers based on a demand forecast for the afternoon shift (4:00 pm midnight). Employees may only work 3 shifts per week: Tue. (2: start filling in 8 employees, a-h. Tue. (2: continue filling in 8 employees, a-h.