Part 1: Efficiency and Utilization

At its Southampton campus, triOS College has the capacity to enroll 2,000 students for its Supply Chain Management (SCM) program.

This advanced program has a pre-requisite requirement for the successful completion of the college's Supply Chain and Logistics program or an equivalent diploma from another college. Due to limitations in available classroom and lab space, and available instructors for the coming two terms, the administration has limited enrollment to the SCM program to 1,750students for now.

Applications for the coming program provided only 1,600 applicants, and after screening applications, acceptance to the triOS SCM program was offered to only 1,450students for the coming enrollment.

Registrations were received from only 1,250 of the accepted students. Of those students, 1,175 students completed the program successfully and graduated.

Question:

1. What is the Utilization rate of this graduation level?
2. What is the Efficiency rate of this graduation level?
3. What would be the Utilization rate if all enrolled students had successfully completed the program?
4. What would be the Efficiency rate if all accepted students had enrolled and successfully completed the program?

Part 2: Capacity and Forecasting

Chalmers Regional Hospital has recorded its demand for Type A Blood Units as follows for the past six-week period:

Part 2 Table
Week of	Units
April 10	340
April 17	389
April 24	406
May 1	394
May 8	414
May 15	422

Question: With the data provided, calculate the number of units that will be required for the week of May 22, using a rolling three-week average.

Using the same data, calculate a weighted average for the rolling three-week periods, using the weighting values of 10% for the oldest period, 30% for the next oldest period, and 60% for the most recent period. What forecast would this provide for the week of May 22 and, also, for the week of May 29?

Part 3: Yield Management

Porter Airlines provides daily service from Toronto City Airport to Calgary, using a Boeing 737 with business-class seating for 12 passengers and coach seating for 108 passengers. Previously, the airline offered business-class seating at a fixed price of $200 per seat, with a variable cost of a filled seat being $40. All coach seating has been offered at a price of $140 per seat for all seats, with a variable cost per filled seat of $25. An average of 70 passengers per flight have been traveling in coach, with an average of 6 business-class travelers.

The airline wishes to optimize yield and introduce a new pricing policy that it hopes will encourage earlier reservations and higher usage. Business class seats will now be offered at $180 per seat for reservations made up to 7 days prior to the flight and $230 per seat for short-notice reservations made less than 7 days prior.

Similarly, the airline will now offer coach seating at $90 per seat for bookings made 7 or more days prior to the flight, and bookings made less than 7 days prior will be offered at $170 per seat.

Variable costs for each seating type remain the same.

In the first 4 weeks of the revised service offering, the airline has determined that the average response has shown an average uptake of 55 coach seats at the early pricing and 22 last-minute bookings at the higher rate, plus 5 business-class reservations taking the early pricing and 2 per flight at the higher last-minute rate.

Question:

1. What is the resulting net revenue for the average flight under this new policy?
2. Although the airline has introduced this new pricing structure on a trial basis, does the early response support maintaining this structure and potentially expanding the approach to other travel lanes?