Statewide Corporation

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I. Background: Statewide Development Corporation has built a very large apartment complex in Gainesville, Florida. As part of the student-oriented marketing strategy that has been developed, it is stated that if any problem with plumbing or air conditioning are experienced, a maintenance personnel will begin working on the problem within one hour. If a tenant must wait must more than one (1) hour for the repair person to arrive, a $10 deduction from the monthly rent will be made for each additional hour of time waiting. An answering machine will take the calls and record the time of the call if the maintenance person is busy. Past experiences at other complexes has shown that during the week when most occupants are at school, there is…show more content…
It takes approximately one (1) hour to drive to the supply house, pick up a part, and return to the apartment complex. d) Past records indicate that, on approximately 10% of all calls, a trip must be made to the supply house. e) Table below shows the probability distribution of the time required to resolve a problem if the part is available on site: |TIME FOR REPAIR (MINUTES) |PROBABILITY | |30 |0.45 | |60 |0.30 | |90 |0.20 | |120 |0.05 | f) It takes approximately 30 minutes to diagnose difficult problems for which parts are not on site. Once a part has been obtained from a supply house, it takes approximately one hour to install the new part. g) The cost of salary and benefits for a maintenance person is $20 per hour. IV. Alternative approaches to solving the problem: Based on the given case and the problems cited, the best approach to use is the Monte Carlo

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