The salesforce of Small Travel Company (STC) Is selling cultural Immersion progr

Question

The salesforce of Small Travel Company (STC) Is selling cultural Immersion programs to U.S. college students that allow them to spend 3 months In Europe STC advertises In various college newspapers, as well as ia social media. Potential customers fill out an online applicatlon form expressing thelr Interest in more Information about this experience. The form also Includes thelr phone number for follow-up discussion, which sometimes, but not always, leads to the customer purchasing the package (more detalls below). On 60 consecutive days in the wInter, STC's employees work hard to sell these programs to ellte unlversity students. The goal of the company is to sell, on average, two packages per day, leading to a total of 120 sold packages. The sales process works In four steps: 1. One salesperson reaches out to the potential customer by phone In order to put together a full profile of the customer, Including skills and location preferences (Germany, Italy, France, etc.). The call takes on average 20 minutes. After the call, each profile is forwarded to a language teacher. 2. The language teacher looks at the student's profile and also organizes a quick follow-up call. This takes, on average, 40 minutes per profile. The teacher rejects 60% of the profiles as the student would not have the language skills to benefit from an STC trip. From the remaining 40% of the profiles, half tell the teacher that they are no longer Interested in particlpating. The teacher then forwards the remalning profiles to the STC accountant. 3. STC's accountant then contacts the student to make a 10% down payment. This takes about 20 minutes per customer. 4. Flnally, the teacher's assistant contacts the customer to confirm the trip and start working on a travel schedule. At this point, an average of one-third of the students decide that they will not participate in the trip (in which case, STC and the student agree to give the 10% down payment to a charitable cause). Thls takes on average 50 mlnutes per student. All employees work 8 hours per day How many students does STC have to contact each day through its call center to fill, on average, Its target of 120 students per season (2 students per day)? 5 students/day O 15 students/day 35 students/day O 120 students/day

Explanation / Answer

ANSWER: 15 students/day

Start with target and do backward calculation.

Target = 120 students per season = 2 students per day

1/3 rd of the students decide not to participate at stage. So, number of students that reach the stage 4 = 2/(2/3) = 3 students per day

These 3 students are half of the 40% of students who reach stage 2.

Therefore, number students to reach stage 2 = 3/(0.5*0.4) = 15 students per day

Number of student need to be contacted per day = 15 students/day

Capacity of each resource is sufficient, so there is no bottleneck in meeting the target of 2 students per day.

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