Statewide Development Corporation

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Statewide Development Corporation

By | April 2012
Page 1 of 4
Case 6
Statewide Development Corporation
PROF. Dennis Berino
Submitted by:
Group 1
Lourdes Cid
Harold Cruz
Carmela Magday
Christine Marie Pagdanganan
Case 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 problems with plumbing or air conditioning are experienced, a maintenance person will begin working on the problem within one hour. If the tenant must wait more than one hour for the repairperson 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 experience at other complexes has shown that that during the week when most occupants are at school, there is little difficulty in meeting the one hour guarantee. However, it is observed that weekends have been particularly troublesome during the summer months. Facts of the case:

Study of the number of call during weekends concerning air conditioning and plumbing problems has resulted in the following distribution: |Time between calls |Probability |
|(minutes) | |
|30 |.15 |
|60 |.30 |
|90 |.30 |
|120 |.25 |

Following considerations in completing service calls:
• Parts needed for most repairs are kept in a storage room at the complex • For unusual problems, a trip to a local supply house is necessary • If the part is available on site, the maintenance person finishes one job before checking on the next complaint • If the part is not available on site and any other calls have been received, the maintenance person will stop by the other apartment(s) before going to the supply house • It takes...

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