| University | Singapore Management University (SMU) |
| Subject | Operations Management |
You recently joined the cke ng opera ons department of TicketWonder, a Singapore-based online distributor of tickets for concerts, theatre performances, and sports events. Its customers come from Southeast Asia, South Asia, and North Asia. These regions account for 30%, 20%, and 50% respectively of tickets sold at TicketWonder.
Customers usually buy tickets during the period from 9 a.m. to 12 midnight (SGT), during which 30,000 tickets of various types are sold on average every day. Ticket sales outside of this daily window are insignificant.
TicketWonder sells tickets online via its own website and earns a $1 fee from event organizers for every ticket sold. Customers at the TicketWonder website purchase tickets via a cke ng system hosted on one of three independent computer web servers. These servers are located in Singapore, Bangalore, and Seoul (for customers based in Southeast Asia, South Asia, and North Asia respectively).
Each customer is currently always routed to his/her nearest server, which is a legacy of TicketWonder’s acquisitions of two competitors in India and Korea in the past. These three servers together cost $100,000 per year to run and maintain.
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