Instructions

Madhuri Apte, a busy professional, rents out her studio apartment located in South Mumbai. Since she stays three hours away from the studio apartment, she uses a networked digital lock to monitor the property remotely. Each customer gets a temporary and unique access code for the digital lock that enables them to enter the studio apartment for the duration of stay. The apartmentā€™s entrance door can also be opened with physical keys and Madhuri Apte has two such keys in her possession.

Madhuri Apte has employed a cleaner who has a permanent access code to enter the apartment for cleaning every day. She is available only between 15:00 hrs and 17:00 hrs.

Madhuri Apteā€™s apartment caters largely to international customers. A customer typically stays for 3 days, paying an average rent of $125 per day.

Question 47

Madhuri's apartment received good feedback from the guests, except with respect to the operation of the digital lock. She decided to leave a spare physical key in the house for her guests. Recently some of the guests had forgotten to leave the key behind during checkout. Making a spare key will cost $500 and will take about 10 days to arrive. She was confused if she should continue leaving the spare key and was looking for a way out.

Which of the following would be the best way out for her?

Solution

Option A is limiting the choices, not the best solution in this case.Ā 

Option B is incorrect as it increases operational effort for Madhuri.Ā 

Option C is ruled out as cleaner cannot stay whenever guests leave the apartment.

Option D is not an effective solution as customers may still not leave their keys behind despite the polite reminders given to the customers.

Option E addresses the concerns that customers don't leave the keys behind, as well gave an option to recover a portion of the cost, if such incidents still occur.

Option E is correct.


Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • XAT previous papers with solutions PDF
  • XAT Trial Classes for FREE

    cracku

    Boost your Prep!

    Download App