Operations Management: Processes and Supply Chains, 12th Edition

Solved Problem 4

1. White Valley Ski Resort is planning the ski lift operation for its new ski resort. Management is trying to determine whether one or two lifts will be necessary; each lift can accommodate 250 people per day. Skiing normally occurs in the 14-week period from December to April, during which the lift will operate seven days per week. The first lift will operate at 90 percent capacity if economic conditions are bad, the probability of which is believed to be about a 0.3. During normal times the first lift will be utilized at 100 percent capacity, and the excess crowd will provide 50 percent utilization of the second lift. The probability of normal times is 0.5. Finally, if times are really good, the probability of which is 0.2, the ...