A hotel owner needs to decide whether or not to hire an inspector for hotel room

Question

A hotel owner needs to decide whether or not to hire an inspector for hotel rooms at a cost of $25,000 per year. The cost of screen out rooms needing rework is $4.00, with a corrective action cost of $20.00. Historically, the average is one in 150 rooms needs rework. a. What is the probability that a room needs rework? (p). b. Use the k p rule to decide if zero or 100% in needed. c. If no room is inspected, then what is the average cost per room? d. If the hotel has 200 rooms, how the owner will save per day? Per year?

Explanation / Answer

a. P(Room needs reworlk) = 1/150 = 0.0067

b, Let k1 = the cost to inspect one item

k2 = the cost to correct rework

so , k1/k2 = 4/20 = 0. 20 >0.0067 (k1/l2 is greater than p)

Therefore, inspection is not necessary.So, zero is the answer.

(c) If no rooms are inspected, then:

average cost = $20/$150 per room = $ 0.13 per room

(d ) savings = $ 4.00 - $ 0.13 = $3.87 per person

at 200 rooms per day = 200 * 3.87 = $ 773.40 per day

for per year = $ 773.40 per day * 365 = $ 2,82,291 per year

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.