Economics Assignment - EOQ, Leisure Group, and Customer Satisfaction

This economics assignment addresses three key areas: Economic Order Quantity (EOQ), the National Leisure Group (NLG), and customer satisfaction. The EOQ section explains the concept of optimal ordering to minimize total variable costs, emphasizing the importance of reorder points to avoid shortages. The assignment also considers the importance of layout in customer experience, specifically highlighting the impact of restroom and concession layouts on waiting times. Finally, it discusses NLG's use of the Key Survey tool for HR functions, particularly employee satisfaction and its impact on customer satisfaction within the travel industry. The assignment references relevant sources to support the analysis.

[ECONOMICS]
2019

Economics
Answer - 1
EOQ is a model that that sheds light on the quality that is optimal so that the order can be
done where the total variable cost is minimized to order, as well as hold inventory. The EOQ
is utilized as an element of a regular review inventory system where the level of inventory is
assessed at all points of time and a fixed quantity is ordered every time when the inventory
reaches a particular reorder stage (Mankiw, 2010). It helps in computing the reorder point
that is appropriate and the optimal reorder quantity to ensure that the immediate
replenishment happens without any shortage. Therefore, if surplus stock exists then inventory
should not be ordered while in case of shortage order should be made.
Answer – 2
Yes, the layout from ticketing to concession to the restroom is an important consideration
because if the waiting time is huge then such provisions can provide solace to the passengers.
Long waiting time is a hurdle and pain however if the layout of the restroom is pleasing and
organized then the passengers can spend the time in comfort otherwise it adds up to the
agony.
Answer -3
National Leisure Group (NLG) is an important leisure cruise line that reaps approximately
$700 million in terms of annual revenue. The human resource of the group is headed by
Julianna Hale that brought the Key Survey tool in for the use of HR mainly in terms of
employee satisfaction, training, assessment of the coach, etc (Hubbard, 2011). The key
survey tool was a major weapon when it comes to customer satisfaction. When it comes to
the travel industry, the major intention remains to draw the customers.
2

Economics
References
Hubbard, D.W. (2011) How to Measure Anything: Finding the Value of Intangibles in
Business (3rd ed). Kindle Edition
Mankiw, N.G. (2010) Macroeconomics (7th ed). New York Worth Publishers
3