Review the case study below and analyze the dilemma at the end of the case. Use a Word document to write your answers in detail. Support your work by inserting relevant graphs, tables, and output you used to complete your analysis. Paste these materials directly into the Word document.
Columbia Paymer Air Case Study
Columbia Paymer Air was started by two friends, Edward Payne and Ryan Cramer, who have been close friends since childhood. They were both born and raised in Columbia, Maryland, attending the same elementary and high schools. After high school, Edward Payne attended Texas A&M University and afterwards become a very successful oil business tycoon who is worth an estimated 5.3 billion dollars. Ryan, on the other hand, attended a military academy, joined the Air Force and served as a pilot, and later became a commercial pilot. After 25 years as a pilot, Ryan retired.
Edward contacted Ryan and convinced him to join him to start a small-scale commuter airline company in Maryland. After a careful and thorough feasibility study, Columbia Paymer Air was eventually birthed in 2001 with headquarters in Columbia, Maryland. It acquired a fleet of five jets in its first years of business, and increased this to 10 within 5 years and 22 by 2010. With business expansion in the northeast, management turned their attention to the phone reservation system and inquiries. They were particularly concerned with the reservation between midnight and 6 A.M., when there are only two agents on duty. (The airline gives discounts for online reservations.)
The distribution of incoming calls during such times is given in Table Abelow. The distribution of estimated times taken to process passenger inquiries is provided in Table B. Usually, there is a hold time and a customer is served in order of the calls. The management does not want customers to hold for more than three minutes as a way of maintaining customer satisfaction. The dilemma facing management is whether the number of agents during such times is appropriate.
Simulation Models Assessment Table A
| A: Distribution of Incoming Calls |
| Time Between Calls (Minutes) |
Probability |
| 1 |
0.9 |
| 2 |
0.20 |
| 3 |
0.23 |
| 4 |
0.18 |
| 5 |
0.16 |
| 6 |
0.08 |
| 7 |
0.06 |
Simulation Models Assessment Tables B
| B: Distribution of Service Times |
| Time to Process Customer Inquiries (Minutes) |
Probability |
| 1 |
0.9 |
| 2 |
0.20 |
| 3 |
0.23 |
| 4 |
0.18 |
| 5 |
0.16 |
| 6 |
0.08 |
| 7 |
0.06 |
| 8 |
0.03 |
Deliverable
As a business analyst, you are consulted to assist management with the resourcing decision described above, by analyzing the data on calls and processing times.
Consider the following steps in order to assist your analysis:
- Develop a simulation model to help analyze and investigate the problem.
- Define the problem. You will need to identify appropriate simulation mechanisms and software for analysis. Support your work with relevant graphs, tables, or outputs.
- Describe the model carefully, justifying the duration of the simulation, assumptions, and measures of performance. You will have to use verification and validation processes for checking model adequacy and performance.
- Offer recommendations to management of Columbia Paymer Air regarding the current reservation system.