Simulation for

Analytics
BY B.RANADHEER REDDY
PGDBA
 Introduction to the case
 The Given case is regarding harbour dunes golf course and its proposal to increase
sale time in afternoon tees by considering the proposal options.
 Harbor Dunes targets the upper end of the golf market and, in the peak spring golfing
season, charges green fees of $160 per person and golf cart fees of $20 per person.
 Under the present plan, Harbor Dunes can sell a maximum of 20 afternoon tee times.
 Harbor Dunes averaged selling approximately14 of the 20 available afternoon tee
times. The average income from afternoon green fees and cart fees has been $10,240.
 Harbor Dunes is considering two replay options:
 (1) a green fee of $25 per player plus a cart fee of $20 per player;
 (2) a green fee of $50 per player plus a cart fee of $20 per player.
Questions?
 To find out Statistical summaries of the revenue expected under each replay
option

 Your recommendation as to the best replay option

 Assuming a 90-day spring golf season, an estimate of the added revenue using
your recommendation.

 Any other recommendations you have that might improve the income for Harbor
Dunes Golf Course.
Analysis of the case

 From the output derived, we can achieve the following solutions:

Statistics Proposal - 1 Proposal - 2

Mean $11,062 $11,173
Median $11,160 $11,360
Standard Deviation $1,802 $1,838
Minimum $5,940 $5,760
Maximum $14,400 $14,400

 Using the mean, the options are similar, but Proposal-2 is preferred
with a daily revenue advantage of $11,173 - $11,062 = $111.
 The Harbor Dunes Golf course has to consider the second proposal
since it is more profitable than the first proposal.
 Without the replay option, Harbor Dunes reported $10,240 daily
revenue.

 So, The Proposal -2 replay policy is estimated to generate an

additional revenue of $11,173 - $10,240 =$933 periday
 Over a 90- Day period i.e spring season, the estimated revenue
increase is 90 * $933 = $83,970. Hence, The policy provided is
beneficial in nature.
Recommendations

 The recommendation to the harbour dunes golf course is that they

have to wait till mid day to get their list of Advance reservations to
implement their afternoon replay option.
 If the reservations made for afternoon are low, then they can
proceed with proposal – 1 which provides more demand for the
afternoon tee times.
 If the reservations made for afternoon are high, then they can
proceed with proposal -2 which provides more income than the
above proposal.
 So, The management must decide proposals based on the no. of
advanced reservations made for Afternoon tee time replays which
can be done based on simulations of the given data.
Thank you