CRUISE INTERNATIONAL, INC. A VIRTUAL SERVICE CASE Operations Management, 4e Reid, Sanders Mission Statement We are committed to serving our customers, both the guests and travel agents who book and support our cruises. Every service we provide must be of the highest quality whether it be shipboard or shore side. We constantly seek improvement and innovation as we strive to reduce costs in order to maintain reasonable fares, further enhancing the value of our service. All bookings are serviced promptly and accurately with the highest respect and courtesy. We recognize that our suppliers and distributors must have an opportunity to make a fair profit. Cruise International, Inc. is concerned about our staff, the men and women who work with us, whether shipboard or shore side. All employees are provided with clean, orderly, and safe working conditions. Each employee is treated with respect and recognized for his/her effort. Cruise International is committed to providing competent management. Our ultimate responsibility is to our parent company and its stockholders. Our business must make a reasonable profit. Data and Charts Cruise Data • North American Passenger Capacity • Cruise Destination Data • Cruise Destination Data (Seasonalized) • Average Length of Cruise Data • Length of Cruise Demand Data • Average Capacity Utilization Quality Survey Data • Billing Errors Data • Guest Survey Data • Housekeeping Stateroom Cleaning Data Work Sampling Data Hours Required to Accomplish Routine Maintenance Tasks Cost Reports Processing Time Chart Activities for Telemedicine System Implementation CRUISE DATA North American Passenger Capacity Individual Cruise Line Detail at Year-End 2009 Cruise Line No. of Lower Berths No. of Ships Carnival Cruise Lines 47,908 21 Celebrity Cruises 14,762 9 Costa Cruise Lines 17,265 10 Cruise International, Inc. 13,120 12 Crystal Cruises 2,014 2 Cunard Line, Ltd. 4.411 2 Disney Cruise Line 3,508 2 Holland America Line 16,929 12 MSC Cruises USA 9,073 7 Norwegian Coastal Voyages 5,923 13 Norwegian Cruise Line 20,950 11 Oceania Cruises, Inc. 2,052 3 Orient Lines, Inc. 845 1 Princess Cruises 28,800 14 Regent Seven Seas Cruises 2,410 5 Royal Caribbean International 45,570 20 Seabourn Cruise Lines 624 3 Silversea Cruises 1,356 4 Swan Hellenic 360 1 Windstar Cruises 604 3 Total 234,077 155 Cruise Destination Data Cruise Destination Data (Seasonalized) Average Length of Cruise Length of Cruise Demand Data Average Capacity Utilization QUALITY SURVEY DATA Billing Errors Data Cruise Number Number of Defective Bills 1 47 2 45 3 59 4 50 5 74 6 71 7 65 8 49 9 26 10 29 11 32 12 35 13 48 14 46 15 51 16 64 17 52 18 44 19 46 20 51 21 45 Total 1029 Guest Survey Data Cruise Number Number of Outstanding Respons.

1. CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
Mission Statement
We are committed to serving our customers, both the guests
and travel agents who book and support our cruises. Every
service we provide must be of the highest quality whether it be
shipboard or shore side.
We constantly seek improvement and innovation as we strive to
reduce costs in order to maintain reasonable fares, further
enhancing the value of our service. All bookings are serviced
promptly and accurately with the highest respect and courtesy.
We recognize that our suppliers and distributors must have an
opportunity to make a fair profit.
Cruise International, Inc. is concerned about our staff, the men
and women who work with us, whether shipboard or shore side.

2. All employees are provided with clean, orderly, and safe
working conditions. Each employee is treated with respect and
recognized for his/her effort. Cruise International is committed
to
providing competent management.
Our ultimate responsibility is to our parent company and its
stockholders. Our business must make a reasonable profit.
Data and Charts
Cruise Data
• North American Passenger Capacity
• Cruise Destination Data
• Cruise Destination Data (Seasonalized)
• Average Length of Cruise Data
• Length of Cruise Demand Data
• Average Capacity Utilization
Quality Survey Data
• Billing Errors Data
• Guest Survey Data
• Housekeeping Stateroom Cleaning
Data
Work Sampling Data Hours Required to
Accomplish
Routine Maintenance Tasks
Cost Reports Processing Time Chart
Activities for Telemedicine System
Implementation
CRUISE DATA

3. North American Passenger Capacity
Individual Cruise Line Detail at Year-End 2009
Cruise Line
No. of Lower Berths No. of Ships
Carnival Cruise Lines 47,908 21
Celebrity Cruises 14,762 9
Costa Cruise Lines 17,265 10
Cruise International, Inc. 13,120 12
Crystal Cruises 2,014 2
Cunard Line, Ltd. 4.411 2
Disney Cruise Line 3,508 2
Holland America Line 16,929 12
MSC Cruises USA 9,073 7
Norwegian Coastal Voyages 5,923 13
Norwegian Cruise Line 20,950 11
Oceania Cruises, Inc. 2,052 3
Orient Lines, Inc. 845 1
Princess Cruises 28,800 14
Regent Seven Seas Cruises 2,410 5
Royal Caribbean International 45,570 20
Seabourn Cruise Lines 624 3
Silversea Cruises 1,356 4
Swan Hellenic 360 1
Windstar Cruises 604 3
Total 234,077 155

4. Cruise Destination Data
Cruise Destination Data (Seasonalized)
Average Length of Cruise
Length of Cruise Demand Data

5. Average Capacity Utilization

6. QUALITY SURVEY DATA
Billing Errors Data
Cruise Number
Number of
Defective Bills
1 47
2 45
3 59
4 50
5 74
6 71
7 65
8 49
9 26
10 29
11 32
12 35
13 48

7. 14 46
15 51
16 64
17 52
18 44
19 46
20 51
21 45
Total 1029
Guest Survey Data
Cruise
Number
Number of
Outstanding
Responses
1 14
2 13
3 15
4 14
5 18
6 10
7 26
8 8
9 17
10 12
11 13
12 14

8. 13 17
14 11
15 8
Total 210
Housekeeping Stateroom Data
Day
Number of
Defects
1 108
2 104
3 94
4 105
5 88
6 150
7 85
8 98
9 145
10 95
11 105
12 65
13 77
14 82
15 90
16 98
17 116

9. 18 113
19 88
20 94
Total 2000
Housekeeping Work Sampling Data
Activity Number of times observed
Cleaning stateroom 144
Delivering room service 12
Removing room service dishes 17
Arranging laundry/dry cleaning service 13
Delivering clean garments 22
Evening turndown service 70
Assisting guests 20
Preparing for crew show 10
Other activity 20
Unavailable for observation 38
Hours Required to Accomplish Routine Maintenance Tasks
Cost Reports Processing Time Chart

10. Cost Reports Process Time (minutes)
Report Review Time Data Entry Time
Specialty Restaurant I 12 10
Specialty Restaurant II 14 16
Wine I 17 18
Wine II 20 22
Wine III 12 15
Bar Service I 10 15
Bar Service II 25 32
Bar Service III 22 28
Bar Service IV 16 20
Shore Excursions 30 35
Gift Shops 24 30
Salon/Spa 18 25
Assignment 1 – MBALN670 – Supply Chain Management
Assignment Brief:
Prior to attempting the assignment questions please read the
following
material:
e International

11. o Cruise Data
• North American Passenger Capacity
• Cruise Destination Data
• Cruise Destination Data (Seasonalized)
• Average Length of Cruise Data
• Length of Cruise Demand Data
• Average Capacity Utilization
Quality Survey Data
• Billing Errors Data
• Guest Survey Data
• Housekeeping Stateroom
• Cleaning Data
o Housekeeping Work Sampling Data
Hours Required to Accomplish Routine Maintenance Tasks
Cost Reports Processing Time Chart

12. Guidelines for assignment
production of someone else’s work as your
own will be
penalized
– Use Harvard or
APA referencing
method.
troduction, main
body, and a conclusion
– 50%
Learning Outcome Assessed: 1,2,3
CHAPTER 4: Supply Chain Management at Cruise
International, Inc.
Bob Bristol, your boss at Cruise International, Inc., just called
to tell you that he was
impressed with your progress thus far in familiarizing yourself

13. with operations at CII-
both the strategic details pertaining to its mission, competitive
priorities, etc. and the
specific details concerning its services and processes. He tells
you that, with all the
buzz about supply chain management (SCM) that you hear these
days, CII is actively
interested in exploring how different SCM concepts and
techniques could be used in
their operations. Maintaining an adequate, assured supply of a
variety of mechanical
equipment, entertainment equipment, retail merchandise, food
products, and supplies
for maintaining the ship is critical to CII. Meghan Willoughby,
Chief Purser aboard the
Friendly Seas I, has a couple of specific assignments that you
will work on later. But for
now, Meghan would like a concise research report for the top
management team
addressing SCM issues relevant to CII.
"Leila Jensen liked your write-up on the CII service package
and delivery system.
Meghan Willoughby wants you to prepare a similar report

14. addressing SCM issues
relevant to CII. Senior Administrators at CII are actively
involved in exploring how SCM
concepts and techniques could be adopted in their operations.
Prepare a concise report
addressing the specific questions that Meghan has put together
for you. I look forward
to receiving your report, which I am sure will provide insight
for SC applications at CII."
1. Provide a comprehensive explanation of the essential
concepts of SCM
and explain to what extent SCM is applicable to a service
operation
such as CII.
2. Evaluate how partnering with some of the suppliers could
benefit CII.
What issues should CII consider when developing partnerships?
3. Purchasing, a major function in SCM, is critical in the cruise
line
industry. Critique the potential conflicts of interest or ethical
issues
facing the purchasing function.

15. CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders
The following virtual service case has been developed as an
interactive supplement to the Reid & Sanders Operations
Management textbook. The case requires you, the student, to
assume the role of an intern working for Cruise International,
Inc. (CII). Cruise International operates cruise ships globally.
During your internship you will be working at corporate
headquarters on both strategic and tactical issues as well as on
board one or more of our cruise ships. While Cruise
International is a fictional company, much of the data used with
regard to the cruise industry is real. There has been some
manipulation of the data to include Cruise International as part
of the industry. Much of the data has been adapted from an
annual report done by the Cruise Lines
International Association, Inc. The style and format of this
virtual case draws heavily from the previous
Virtual Company Consulting Case developed by Ted Helmer of
Theodore Helmer and Associates, Inc. and
Jon Ozmun of Northern Arizona University.
An Overview of the Cruise Industry

16. In 2006, the size of the worldwide cruise market was
approximately 12 million passengers. Of those 12
million passengers, 10 million passengers embarked on cruise
voyages from ports in North America. The
U.S. cruise passengers, representing approximately 78% of the
worldwide cruise passengers, have about 9
million passenger embarkations.
The total economic impact of the cruise lines, passengers, and
their U.S. suppliers reached $35.7 billion
according to a study done by the Business Research and
Economic Advisors (BREA). In the BREA report,
it shows the following U.S. industries that most benefited from
the cruise industry.
lion
Direct spending of the cruise lines and their passengers on
goods and services produced in the United
States in 2006 was $17.6 billion. This spending resulted in
348,000 U.S. jobs paying $14.7 billion in wages.
In 2006, the top ten U.S. cruise port cities, ranked by number of
embarkations, were Miami, Port Canaveral,
Port Everglades, Galveston, Los Angeles, New York, Tampa,
Long Beach, Seattle, and Honolulu. Florida

17. remains the center of the U.S. cruising industry, accounting for
almost 56% of the embarkations. California's
cruise ports represented nearly 14% of all U.S. embarkations.
Texas is the highest growth market. New
York increased embarkations to 536,000 with the opening of the
Brooklyn Cruise Terminal. U.S. ports of call
had approximately five million cruise ship visits in 2006. Most
of the visits were to Alaska, Hawaii, and Key
West.
Following are some fast facts about the cruise industry.
-passenger cruise ship with 950 crew
members generates approximately
$322,700 in offshore spending in a U.S. homeport city.
one or more nights in a port city
either before or after the cruise. Each of these visitors spends an
average of $289 per visit on retail,
dining, local transit, and lodging.
(CLIA), the industry has had an average
annual growth rate of 8.5% per annum.
oung. Since 1980, over 100
million passengers have taken a deep-
water cruise. Of this number, almost 60% have done their cruise
within the past ten years.
Americans expressed an intent to cruise
within three years. Of those, 31 million expressed a strong

18. intent to cruise within three years. At this
point in time, only 17% of the U.S. population has ever cruised.
design concepts, new onboard
and/or onshore activities, new cruise themes, and new cruise
lengths to reflect the changing
vacation patterns of today's market.
expectations. Cruising consistently
receives top marks.
which passengers may return for a
future vacation.
states and Canada.
CRUISE INTERNATIONAL, INC.
A VIRTUAL SERVICE CASE
Operations Management, 4e
Reid, Sanders

19. An Overview of Cruise International, Inc.
Cruise International has been in business for more than two
decades. The organization competes in all
aspects of the cruise industry. They provide cruises with small
ships (fewer than 500 passengers), medium
ships (between 500 and 1,500 passengers), and large ships (over
1,500 passengers), as well as several
different luxury levels.
Cruise International, Inc. currently uses the following port
cities for embarkation and disembarkation.
Amsterdam, Holland
Auckland, New Zealand
Barcelona, Spain
Beijing, China
Buenos Aires, Argentina
Cape Liberty, Bayonne, New Jersey
Ensenada, Mexico
Ft. Lauderdale, Florida
Harwich, England
Hong Kong, China
Honolulu, Oahu, Hawaii
Los Angeles, California
Miami, Florida
Rome, Italy
San Diego, California
San Francisco, California
San Juan, Puerto Rico

20. Seattle, Washington
Seward, Alaska
Singapore
Southampton, England
Stockholm, Sweden
Sydney, Australia
Valparaiso, Chile
Vancouver, British Columbia
Venice, Italy
Corporate headquarters for Cruise International, Inc. are located
in Miami, Florida.
The cruise ships used by CII have a number of departments and
services. The Administration basically handles the
paper work during the cruise. The Deck and Engine members
are responsible for the operation and maintenance of
the ship. Entertainment Services provide the onboard
entertainment. Food and Beverage Services are responsible
for dining and drinking aboard the ship. The Hotel function is
responsible for the staterooms for guests and crew.
Housekeeping cleans the public areas of the ship as well as the
staterooms. Information Technology is responsible
for the operation and maintenance of all areas of the cruise
ship's onboard computer system. The Cruise Staff is
responsible for maintaining guest relations.
Clicking on the underlined department allows you to find out
more about the department or simply go to the Cruise
International, Inc. Departments and Services Page.
The descriptions of job positions were taken from

21. http://www.cruiseservices.co.uk and
http://www.cruiseshipjobs.biz.
http://www.cruiseservices.co.uk/
http://www.cruiseshipjobs.biz/cruise_ship_job_descriptions_pos
itions_on_cruise_ships_employment_opportunities