Mr. Armstrong of Orion Controls has decided to hire a consulting company to analyze some aspects of
Question:
Mr. Armstrong of Orion Controls has decided to hire a consulting company to analyze some aspects of his business. He needs help analyzing his business and design processes for new projects. Orion Controls has always been known for technical advances in many areas of his expertise, but this type of research can be demanding. Orion Controls has many important clients to satisfy with each ongoing project. Staying ahead of other companies is one of the ways Orion Controls sets itself apart. If they are very impressed, some of these clients may sign exclusive contracts with Orion Controls to develop future projects, generating revenue streams for the company.
Permanent client projects:
Each permanent client requests projects on average every 4 months and will only have a maximum of two projects at a time. These projects can vary in length, but generally take an average of 3 months to complete. There are 5 clients that have permanent contracts with Orion Controls. Mr. Armstrong knows that his company can easily handle 10 of these types of projects and could possibly handle up to 12. For example, this means that if all permanent clients currently have 1 project for Orion Controls, they will still be able to handle between 5 and 7 projects from new or occasional clients. Since he is developing the new business marketing strategy, he would like to learn more about the percentage of time they could take on new projects and how many they could take on.
Questions and concepts to consider:
Birth-Death Process and Basic Probabilities, assumes exponentially distributed data
What proportion of time does each individual client currently have 0, 1 or 2 projects with Orion Controls?
What percentage of time will Orion Controls 1, 2, 3,…, 9, 10 have permanent client projects and how many slots does this leave for new or occasional clients?
On average how many permanent client projects will you have?
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr