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ane Doe, a professor at UW , lives in the community of Rock River, a community of approximately 4 5 , 0 0 0 residents

ane Doe, a professor at UW, lives in the community of Rock River, a community of approximately 45,000 residents
(this population is a made up number); twenty-five miles from school. She had been thinking about her commute to
work for some time now; gas was over $4 a gallon and her car was approaching the 100,000 mile mark. After
discussions with several friends who make the same commute, she and her friends were wondering if a commuter bus
would be an option that might benefit both the people who make the drive and simultaneously be profitable to the
university.
Jane met with Ben Cook, Dean of the MBA program, to see if UW would consider purchasing a bus for this purpose.
She opined there were quite a few people who live in Rock River who drive to the university and that they would
gladly pay a fare to cover the bus costs. Benefits would include a reduced carbon footprint and significantly fewer
miles being driven on the cars used by these people.
Ben met with his staff and the president of the university to consider this service. After the meeting he met with Jane
to explain the universitys position. While everyone liked the thought of providing the bus service, he explained, the
university just isnt in the business of providing transportation to its employees. UW doesn't have the facilities or staff
to maintain the equipment and there is risk that this would lose money and cost the university financially. He said,
Try explaining to the students why their tuition is going toward a commuter bus to Rock River!
Ben then offered an alternative; that university officials would meet with MARTS, Made-Up Authority Regional
Transit Services. Perhaps they would add a dedicated bus line to UW. MARTS is a public transportation system for
the urbanized Rock River Area, which travels about 1.5 million miles per year. Over 2,700 people ride MARTS buses
each day to work, doctor visits, shopping or school. People pay a minimal fare ($1.25 per fixed route), with MARTS
being subsidized through a combination of tax dollars and other public funds A week later Ben and Jane met with
George Kekel; controller for MARTS. Jane explained that such a service would be out of MARTS regional
jurisdiction, and as such it cannot be subsidized through any public funding. In effect, the service would have to be
paid for entirely by user fares, and would be operated on a for profit basis. Ben said the university would still be
interested, and asked Jane if a proposal could be put together, culminating in the fare that would be charged commuter
bus users. Jane agreed and added that because this would be a separate service operated for a profit, they would
purchase a bus (or busses) for this service rather than use buses from the existing fleet.
Questions for I would have for an analysis:
1. How many people will use the commuter bus service?
2. What times during the day will the service make the commute? How many miles will be driven each
day?
3. What will be anticipated daily demand for each of bus trip during the day?
4. What types of busses are available? What is the cost of theses busses? What is the life of these
busses?
5. Given the scheduled demand in #3 and the type of bus selected, how many busses are needed?
6. What is maintenance cost expected to be?
7. What is fuel cost expected to be?
8. What happens if the bus breaks down, what will be used as backup and what will this cost?
9. What will be done if more people want to ride than the bus can handle? What will the cost be?
10. How will the bus be staffed? What will be employee cost?
11. What will the route be?
12. How many days a week will the service be in operation?
13. How many weeks will the bus service be in operation?
14. What should the profit/return be for MARTS?
15. For what period of time should the analyses be performed?
Answers to those questions:
1. UWs department of institutional research revealed that 116 faculty and staff as well as 464 students
lived in Rock River. These people were surveyed and an analysis of the results lead to a projection that
approximately 200 would use the commuter service.
2. The bus schedule for Monday Thursday will be: 7:20am Rock River to UW then back to Rock River;

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