Harbor Dunes Golf Course was recently honored as one of the top public golf courses in South Carolina. The course, situated on land that was once a rice plantation, offers some of the best views of saltwater marshes available in the Carolinas. Harbor Dunes targets the upper end of the golf market and, in the peak spring golfing season, charges green fees of $160 per person and golf cart fees of $20 per person.

Harbor Dunes takes reservations for tee times for groups of four players (foursomes) starting at 7:30 each morning. Foursomes start at the same time on both the front nine and the back nine of the course, with a new group teeing off every nine minutes. The process continues, with new foursomes starting play on both the front and back nine at noon. To enable all players to complete 18 holes before darkness, the last two afternoon foursomes start their rounds at 1:21 p.m. Under this plan, Harbor Dunes can sell a maximum of 20 afternoon tee times.

TABLE 12.12

Probability distribution of sales for the afternoon tee times

Number of Tee Times Sold Probability

8 .................................................. 0.01

9 .................................................. 0.04

10 ................................................. 0.06

11 ................................................. 0.08

12 ................................................. 0.10

13 ................................................. 0.11

14 ................................................. 0.12

15 ................................................. 0.15

16 ................................................. 0.10

17 ................................................. 0.09

18 ................................................. 0.07

19 ................................................. 0.05

20 ................................................. 0.02

TABLE 12.13

Probability distributions for the number of groups requesting a replay

Managerial Report
Develop simulation models for both replay options using Analytic Solver Platform. Run each simulation for 10,000 trials. Prepare a report that will help management of Harbor Dunes Golf Course decide which replay option to implement for the upcoming spring golf season. In preparing your report, be sure to include the following:
1. Statistical summaries of the revenue expected under each replay option
2. Your recommendation as to the best replay option
3. Assuming a 90-day spring golf season, an estimate of the added revenue using your recommendation
4. Any other recommendations you have that might improve the income for Harbor Dunes

Transcribed Image Text:

Option 2: $50 per Person+Cart Fee Number of Fourson Requesting a Replay Option 1: $25 per Person +Cart Fee Number of Foursomes Requesting a Replay 0 Probability 0.01 0.03 0.05 0.05 0.11 0.15 0.17 0.15 0.13 0.09 0.06 Probability 0.06 0.09 0.12 0.17 4 0.13 0.11 0.07 0.05 6 6 9 10