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Practice Questions: Capacity Management
1.
Club Med in Zihuatanejo a Mexican resort city has 250 beds.
The club sells only
one type of packages:
4day packages. Assuming that Club Med is willing to
admit vacationers 7 days a week.
a.
What is the capacity of the Club Med?
250/4 = 62.5
This means that they can admit 62.5 vacationers per day.
62.5*7 = 437.5
this means that they can admit every week 437
vacationers.
b.
What is the utilization rate?
Utilization rate = (62.5 vacationers per day)*(4 bed days/vacationer)*(7
days/week) / (250*7) = 100%.
The utilization rate is 100%.
c.
What is the capacity of Club Med if they admit vacationers only 5 days a
week?
What is the utilization rate?
The utilization rate is 416.66*4/(250*7) = 0.95
The number 416.66 was calculated by assuming that on Mo, Tu, We,
Fr,
Sa 83.33 vacationers are admitted.
In total 416.66 vacationers are
admitted every week and each stays 4 nights. (Su and Th no vacationers
are admitted)
2.
Club Med has only one dining room.
The dinning room is open from 6 to 10 and
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This note was uploaded on 02/24/2008 for the course BUAD 311T taught by Professor Vaitsos during the Fall '07 term at USC.
 Fall '07
 Vaitsos
 Management

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