Question: Carie Ford owns StudyTime an educational tutoring center in Baytown

Carie Ford owns StudyTime, an educational tutoring center in Baytown, Florida. The center offers private tutoring in math, writing, and science. Information about the tutoring sessions is as follows:

Since the company opened five years ago, demand has grown faster than the supply of qualified tutors. Carie currently has enough tutors to provide only 350 hours of tutoring each week.
a. Can Carie satisfy customer demand with her current supply of tutors? Why or why not?
b. How should Carie allocate the currently available tutor hours?
c. What total contribution margin will Carie earn based on your answer to (b)?
d. Carie has decided that instead of offering individualized instruction in math and science, she will switch to group sessions. Each math session will accommodate two students, and each science session will accommodate four students. Each student in the group will continue to pay the original session price. All sessions will have a single tutor, but each student will need supplies. How will this change in service delivery affect Carie’s ability to meet demand? How will it change her allocation of tutor hours?
e. Suppose Carie has enough tutors lined up to provide 600 hours of tutoring each week. However, the building she currently leases has no room for expansion; when fully scheduled, it can accommodate only 350 tutoring hours each week. What is the constrained resource? How can Carie overcome the constraint to meet the current demand for her services and provide room for futuregrowth?

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  • CreatedFebruary 21, 2014
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