1. Describe the model carefully and justify the assumptions and measures of performance.
ZZ Airline’s model was aimed at introducing an advertisement campaign in order to increase revenue and achieve better business growth. ZZ Airline’s new marketing plan model would assist the company determine the normal call times and challenges that an operator would face in case of a higher traffic flow. The assumptions made were that the mean service time was less than the mean interval time. From this assumption, the airline could easily determine the mean talk time and the customer service time using the model. In addition, the following assumption ensures the company maintains its strategy of ensuring customers do not have to wait in the service line for more than three minutes. The model was expected to determine the following measures of performance and compared to the already excising operations to determine their effectiveness. These indicators are: customer’s average waiting time, maximum waiting time, agent idle time percentage and agent utilization percentage.
2. What would you advise ZZ Airlines to do for the current reservation system, based on the original call distribution
According to Artur, Thomson, & Gamble (2010), strategic options provide alternative plans in a business where creative actions are required. ZZ Airline’s current reservation system records many delays because they have a high customer flow, but with only one agent. In order to improve on their customer operations, the Airline could implement the online reservation program. ZZ Airline management should implement an online reservation process whereby customers will have to make their reservations via the internet. This process would reduce the amount of time an agent spends with customers.
3. What are your recommendations regarding customer satisfaction and operator utilization if the airline proceeds with the advertising campaign?
Artur, A, Thomson, J, & Gamble, E. (2010). Crafting and Executive Strategy. The 17th Edition.
Barbara, M, & Sprague, H. (2012). Information System Management in Practice. (3rd Ed).
Prentice Hall Inc.