Question

Simulation Case Study:
Phoenix Boutique Hotel Group

Phoenix Boutique Hotel Group (PBHG) was founded in 2007 by Bree Bristowe. Having worked for several luxury resorts, Bristowe decided to pursue her dream of owning and operating a boutique hotel. Her hotel, which she called PHX, was located in an area that included several high-end resorts and business hotels. PHX filled a niche market for “modern travelers looking for excellent service and contemporary design without the frills.” Since opening PHX, Bristowe has invested, purchased, or renovated three other small hotels in the Phoenix metropolitan area: Canyon Inn PHX, PHX B&B, and The PHX Bungalows.

One of the customer service enhancements Bristowe has implemented is a centralized, toll-free reservation system. Although many customers book specific hotels online, the phone reservation system enables PBHG to find the best reservation match at all properties. It has been an excellent option for those customers who have preferences regarding the type of room, amenity options, and the best price across the four hotel locations.

Currently, three agents are on staff for the 6 a.m. to 2 p.m. call shift. The time between calls during this shift is represented in Table 1. The time to process reservation requests during this shift is in Table 2.

Table 1: Incoming Call Distribution

Time Between Calls (Minutes)	Probability
1	0.13
2	0.23
3	0.27
4	0.19
5	0.15
6	0.09

Table 2: Service Time Distribution

Time to Process Customer Inquiries (Minutes)	Probability
1	0.19
2	0.17
3	0.16
4	0.15
5	0.11
6	0.08
7	0.03

Bristowe wants to ensure customers are not on hold for longer than 2 minutes. She is debating hiring additional staff for this shift based on the available data. Additionally, Bristowe and PBHG will soon be featured in a national travel magazine with a circulation of over a million subscriptions. Bristowe is worried that the current operators may not be able to handle the increase in reservations. The projected increase for call distribution is represented in Table 3.

Table 3: Incoming Call Distribution

Time Between Calls (Minutes)	Probability
1	0.26
2	0.27
3	0.24
4	0.14
5	0.11
6	0.06

Bristowe has asked for your advice in evaluating the current phone reservation system. Create a simulation model to investigate her concerns. Make recommendations about the reservation agents.

BUS-660-RS-T8SimulationCaseStudyPhoenixBoutiqueHotelGroupTemplate Home Insert Draw Page Layout Formulas Data Review View Cut AutoSumv 11 A Wrap Text Calibri (Body) Copy v Fill ¥ B 1 yv -.-. A¥ 国Merge & Center. Conditional Forable snees Insert Delete Format Sort & Ideas Sensitivity Filter Clear w G13 GH 0.17 20 38 0.16 0.15 73 74 846 0.11 0.08 87 96 21 27 Customer Number Random Number Random Number idle Percent Utiliation Summary for This Trial Run Awerage 35 39 50 50 51 54 囲ロ凹ー + 100%

Answer 1

Answer: Input Date: ---27/5/2019 Interarrival time (discrete distribution) Service Time (discrete distribution) 0.123 0.213 0.13 0.19 0.23 0.340 0.17 0.404 0.27 0.594 0.16 0.584 0.19 0.774 0.15 0.753 0.15 0.915 0.11 0.876 0.09 1.000 0.08 0.966 0.03 1.000 ist of Formulas - Summary measures B23-RANDO C23 INDEX(SB$4:SB$9,MATCH(B23,SD$3:SD$9,1),1) D23 RANDO E23 INDEX(SFS4:SF$10, MATCH(D23,SH$3:SH$10,1),1) Summary measure:s Utilisation of Server List of Formulas-Summary measures E13-1-SUM(K22:K121)/H121-G22) E14 COUNTIF(J22:J121,">0")/COUNT(J22:J121) 0.983 Average Customers Waiting Lq 0.93 Average Customers in System L- 1.913 E15-E14+E13 Average Waiting Time 23.820 minutes E16-AVERAGE (J22J121) FB23-C23+F22 Average Time in System 27.33 minutes E17-AVERAGE(122:1121) G23 MAX(H22,F23) Simulation H23-G23+E23 InterArrival Service Arrival Service ServiceTime Time Server 123-H23-F23 RN Time Start Time End Time in System on Hold Idle Time Customer RN J23 MAX(0,G23-F23) K23 MAX(0, F23-H22) 0.396 0.559 0.854 0.404 0.595 0.019 10 0.322 18 0.648 0.645 0.617 15 18

Interarrival time (discrete distribution) Service Time (discrete distribution) Input 0.241 0.26 0.19 0.213 0.491 0.27 0.17 0.404 0.24 0.713 0.16 0.584 4 0.14 0.843 0.15 0.753 0.11 0.944 0.11 0.876 6 0.06 1.000 0.08 0.966 0.03 1.000 List of Formulas-Summary measures List of Formulas-Summary measures Summary measures E13-1-SUM(K22:K121)/(H121-G22) E14-COUNTIF(J22:J121," 0"/cOUNT(J22:1121) B23 RANDO C23 INDEX(SB$4:SB$9,MATCH(B23,5D$3 SD$9,1),1) D23-RANDO) E23 INDEX(SFS4:SF$10,MATCH(D23,SH$3 SH$10,1),1) Utilisation of Server 1.000 Average Customers Waiting Lq 0.99 Average Customers in System L 1.990 E15-E14+E13 Average Waiting Time 21.180 minutes E16 AVERAGE(J22:J121) Average Time in System 24.28 minutes E17-AVERAGE(122:1121) FB23-C23+F22 G23-MAX(H22,F23) Simulation H23-G23+E23 InterArrival Service Arrival Service Service Time Time Server 123 H23-F23 123 MAX(0,G23-F23) Time Time Time Start Time End Time in System on Hold Idle Time Customer RN RN 0.772 K23 MAX(0, F23-H22) 0.991 0.036 0.255 13 4 0.185 0.357 13 15 0.018 0.098 15 16 0.163 0.544 16 19