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Cycle Tours Of Ashalnd Essay

2113 words - 9 pages

Plant and Facilities
Cycle Tours of Ashland will be located at 58 Winburn Way in Ashland, Oregon. The location is across from Lithia Park in downtown Ashland. The location was chosen because of its close proximity to heavily tourist populated areas. The building is 1,393 square feet which includes a main building and a patio with a smaller building (Zillow.com, n.d.). The patio area is closed off from the sidewalk and will be used to store the bicycles. The small building near the patio will be used in summer months as the front counter for sales. During the colder months the front office will be located into the main building. The back office will be located in the main building all year. There is parking to the right of the building as well as public parking across the street. On average utilities (water, electricity, and sewer) for this location totals to $193 per month (City, 2014).
Labor Requirements
Four employees, including the owner, will be on staff to help with the operations of the business. This includes two tour guides for the adventure tours only, since the independent tours will not require any guides. The tour guides must be knowledgeable about the areas to be toured and trained in first aid. Office workers will be used to assist customers in areas of inquiries, reservations, and complaints. The office workers will include the owner and a part-time employee. Requirements for the office workers will include experience greeting and assisting guests and operating the reservation software. The software operating will be an on the job training. In the first three months, the owner will be the only employee opening and closing the store. After this time if the part-time employee is willing and viewed as safe to take on these responsibilities then they will be allowed to open and close the business.
Capacity Utilization
Cycle Tours of Ashland will be open 268 days out of the year and opened 6 days a week (Tuesday through Sunday) from April to September and 5 days a week (Wednesday through Sunday) from October to March. The operating hours will be 6 hours per day from 11 am to 5 pm. The table below shows the full capacity of the business. The guided tours per month were calculated by the number of days opened by 4 the number of tours per day (two tour guides with tours lasting three hours long) by 3 people (the minimum amount for an adventure tour). The independent tours per month was calculated by 30 bikes by 2 (the turnover rate assuming that each tour will last three hours and the business is opened six hours a day) then the answer multiplied by the number of days opened. The sum was taken to find the total amount of tours per month. Rentals per month were measured by taking the days opened and multiplying by 8 (the number of bikes left after the tours; 50-42=8).

Table 4
Days opened Adventure Tours per month Independent Tours per month Total Tours per month Rentals per month
April 25 300 1500 1800 200
May 27 324 1620...

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