application of the assignment problem case of pagcor's slot machine operation
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7/28/2019 Application of the Assignment Problem Case of PAGCOR's Slot Machine Operation
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" ^.'^^^:.h-t loPerFescnts holnpli3don of 6"',ir.igr**t problern s a disrribution roblem o thecssc
. of PAC€OR's slot rnachineoperation a:orxi of its.Cariho Filt'plno brrnches n the pUif';ppi""r. p". ion"coofid3ntir{i,tyof ieveral pieces qf infomntion, thc pqrticiilar'braroh whEre the study took
'placeand rbe
operutios licrsonnelwhohelpid the aulhorobtain hcrequireddara iu"ot
x *-J h rid; p"C---
.-:
- PAGCOR'or the P.{lrnnle enus€mcot aad iaming Corporatiorl uscd o bc ihe'PhilippineCasino. operatorscorirorarioa duting.rh:. v{arc9s ears. sin; iE ,#b;;i;;i.-*r ir, .luly 19se, ,nccoR's'
,tI*-: l^ h.*ry*^It!- cqosistcotgrowtbandstrongpeionnancr. tL pp 8.98 billiou iocome.during' lhe [rst ninc monthsof 1997 laced its monibly incomeatan-averageof php 998 mfioo as comparedo thl' PT ?lz milliontverage,montbly amiDgst postid for thd'sarre *J iitlgx. Reverues ome rom hreet
fJtt 1T9*_j STs"ft-"P t!!9 g"qF"-a"a ltot g19!ines, Sualiyrng fees entranceecs), ;d rcqta1ncone .
' IIom cDrrywThrog operajous09asyS 9f gsrting facilitics to an opcratorwho b'rings oieign players nto the
_*5ryI?TTg.the J998amuatplanningco,afcr-ci, &mD"""Lb". s to rO, isz, l"p"rd'*dale-tevel. -l]|SjF. T*.challenged
to ctaft q slTtSq thst would enablePAGCOR to overoomc'tbe
dangersof lhe'currcnt ccfiouic conditionsrnd to mairitain ts inpressire'profitabiliry tbat bave srade t thi cotiltry's most
pofitableorporationn'1995 d id:'1996.'wi,llit'"n ii*g";;i;;"*;;#d*"' * pliiii6ti'n";.
ncreasingly become more oriented * optinizing pqrfqrmatr,?ewhile.bcing morelesponsive
to shifting iustomer:: " ;xefercnccs.:- ' . r ' : - ' .1: . . , : :
. : : . : ] - : ' , . - : . i , , : . : : - ' -. l i ,.. , . ,. : . ,
,-r_-_. ̂ ,.3: *, *tty .oryTti* ir-oy parrlcuG'Ur*O oi C-io o Fitipino tns V,comebe uU;ei i,finterestf he ut[or.Theraih r""" "f
rh";;;t u'oa]rt; iti#*,rifiti,rf,.*J*ffil;ilffi;l"j^gr$ r..tc rapi,outiue;abcarar,nini accarar,n,dpok;,;;s;:i;-;r'J;"birJ;;; il;.Ill tll
}]:o:q.*d"** to .2.27.LrLe othrCasrno. Filipino o[erations; be branch s rclenrlessly
mod€rDlzEgts facilities. ridcontiriuously mpro'r,ing',its pcrations.tAspart of the quest for'.supcrior' pcrf.oroaacc'.Ealascmrtrt rvould like to"*i*i.
if thc currgrtrtmix and plocemcntof slot roachines o 57' lea'trn8 ocauonsand their extended roupl arcstill favoiableos'far as-di"ld"g nct rcccipts s concerled.' Thc Slot vtachineSection, bqgroupresponsibleor tbeopcrationof slotrnachines,as not used be conieptsofassignmeilproblem o daermiit" rt" opi--o placemeniof machinesalthougb hecasino's present ystemof
. ti*tg andassigningmachinesalsoconsiders he q,pesof machinesan4 fJr eachmachine. hb actualdaily. sversge et receiptand numberof playeo.,"d of'pl"y
times.Even thoughno i"fbr.utiori"";.t""i
arUi,averuge etreceipts rom themachiniswasnude
"*it"'tt"tyrl"
"p".airi;"ff,[. uutho,** able o apply
theassignment'toblemby using theamountof oachine deoqrninations themiaimum ambuntof bet allowed
Ior cachpuuandby corsidering.otherictors_coolaininghe.equireddataprovided o him by theSlbt vlachineSectio' Tbus' from tbgfour ql"y!:t gr'"hi"c mixesiroviiea by theopgmtions Ln tn" Hungarinnmerhol:f 9$P1
(Quantitativesysteirs fo.rBusinessPlus) veriion 2.0, uiorpui"r prog; by yih-Long chang and TqF
t s.-sullivan,yieldedan ggrirounassigrunentrrtot mi"iinoi;itd;fig b"ationswir.han estimateddaily totolnet recciptofPhp 158,s54'8 r an'esiinat"dyeaily totalnet eceiptof'elp sz.ra milion This otalneJlec€.rpts 3.47 imes
T4*h Qt. totalnet ccciplthaic"n be realzi &ily, i, y*rly,from the currgot
mixandp lacemento fmach ioes. . '
' ' ' . . . ] . .:
PAGCOR'SFIRSTTEN YEARSUXOBNTIIE POST-EDSAMANAGEMENT.
' :- . . . . - .-- : . . . .PAGco\ or fte Philippine-AmusementndGamingCorporatioqsedo be he
' ' :Philippine CasinoOperatordColporatiohduring,the Marcosyears. t changed ts
Tanagementn July 1986. The first tbn years of operationunder the post-EDSA
manageqent asa p€riodiof emarkablbuccessesnd"esounding ictories.FromJuly. a '
1986 o December:996,thecorporation's'ccumulatedevenuewasPhp 60 billion. It
wasa periodcapPedearafteryqarby recordhchievementsndeffectivennovationsn
tha,ny sPects f its operations.n its tenthyear under he post-EDSAmanagement,t
t
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:, ' brokethe ten-billion-pesooundaryine int::T"
the ten-billion-pes-ooundaryine in revenues s it posteda record-setting hp1l'24 billion totar ncome or 1996 The colporation,smpressive:erfor-J ;; irealized lrgughaggressiveurri.u, anddomesticmarketing fforts,andboostedn large
PartbyFpthrivingtourismindustryandstrongecono*,..-_ ?:---'-..
PAGCOR'Sevenue uadrupledo Php2.05billion n 1gg7 romthephp 536..64miltion total ncomet postedn July o December 986.Revenubhenconsist.ntlyo*to Php2-63billion n r9g8,php3.5gbllion in 19g9,php4.23b1rt"; ;;;;;,;;; ;;;
. b.iui.lnn 1991,Php6 I I billion n 1992,phpz.s9tbillion in lgg3, php7.57billion in199'4'Php9'42 illion n 1995, ndPhp |l.24birlion in 1996. n termsof yearlygrowth,
In 1995'PAGCoRoccupiedhe highestposition n the Securities ndExchangecommission'sist of top 5,000publicand=privateo.po*ri*r;;; of net ncome'surpassingwo Philippinegiantcompenigs:anMiguel corporationandphilippineLongDistanceandTelephbne ompany. n rlg6,pAccoR wasstiu ,rr. pr,ii-pii*;;;
,e:ofitabletl*n*t and,asof December f thesame ear,became neof *.
"o""roirggest mployers,mploying otalof 9,090base.
, -PAGCOR's three-shift,24-hour cagino operations table games and slot
machines) osredotal winnings.f
php56.07bilrion for the period r, ,r, ,nru *o:r:t-.ott
",-tlnu'Toge$erwrtf,
1n9php r 17 billion qualifying ee (entranceee)
collections nd Php 1'47billion from the lease f chipswasrringacilities or leaseofgaming acilities o an operator,whobring n foreignplayersnto thephilippines),thecorporation'sncomerom gaming perationsotaredHrp ss.zr uilion uro;; 6o;^;;b ranchcon t r ibu t ion inTab Ie l ' I ' - - - . - - - : . : . .
Table =L\coME FR'TIIGAMINGopERATIoNSIN'ILLI.N pEsos
BranchBranch
AngelesBaguioBacolodCagayan eOroCebuDavaoIloilo
Php ,689.57. 34t.221,432.25
1 .8. 3,163.60
1,454.12. 29.30
LaoagHeritageOlongapoPavilionSilahisTagaytay
Php372.694,734.85
'133.57
23,185..5220,378.331,126.32
Total , ;Php58,207.55Isabela tt n ' " * ; t t tP ro'tv t ))
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./"'
,The ollowing-shoulde notedwith referenceoTable1:, , '
:
. ' . , ;March |2 , .79g2 : , . . ,
. Income rom-Baguio ranch ncludeswinningsduring heperiodJuly 1986 o
July16;1990 nIy. 1'
o .Income rom Cagayande Oro branch ncludeswinnings during the period
June to26,1993 nly.
. Income rom.Cebu perationsncludeswinnings romthe followingsatelliteI .:- aSltroSl̂ ebu eachClubCasino fromDecembei ,199t5q June ,1996;i SkyClubCasino fromJuly6, 1994 o September , 1996;Delta hilippine
.' :; ' Dieam-startedoperationson January26, 1996;and waterfront Mactan
o Income rom Iloilo branch ncludeswinningSduring he periodAugust1986
to December 987only.
o IncomeromIsabela ranchncludes'winningswing the:period ecgmber ,
1991o September5,l9g3only.
. Laoagbranch tarted perationsnApril 24,1992.
. Heritage ranch tarted perationsn AugustS,'lgg4.
. Tagaytay ranchstarted perationsn May 25,lg9l. .. ,
'Interestandother ncome mounted!o Php 1.32billion, bringing he otal ncome. I :
to Php 6a.02billion forthe periodJuly15 ,1986 o December31, 1996.,
Out of the original l0 Cas,inoilipino brancheshat PAGCOR startedout with in
19E6, wo were closed dorvn - Iloilo brancii in 1987 becauseof lack of viabiliw and
Baguio branch in the aftermathof the 1990 killer earthquake. n 1991, Tagaytay" ndt :
Isabela ranches ereopenedollowedby Laoag itn 992.However, sabela ranchwasclosed in September1993. ln responseo changingcustomerpreferences, ebu
operationspenedrvosatellite asinos one n the SlqyClub of the CebuPlazaHoteln
1994, nd anothern theCebuBeachClubUot.t in 1995.However,hese ere eplaced
by moremodernacilitiesat heDeltaPhilippine reamFloatingHotel n Mactan nd he. : l
WaterfrontMactan slandHotelright acrosshe MactanCebu nternational iqport.As
of December 996,PAGCORoperates2CasinoFilipinobranchesn thecountry.
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' , . t ,
The financial riumphof manycasino.operations,he improved mageof casino
gaming ndustry,and the growingmarket or recreation ndamusementavegiven hecasino industry rvorldwidean even larger rgom for develoirmentand growth. Theindustry n theAsia-Pacffic egionreflects'this rendalthoughhe recentcurrency risisgenerally lowed
9o* the region'seconomy. AGCOR'sprospectsn the regionarpstill bright evell n the presence f 53 casinosscatteredn the Far Fastas of 1996.Thegamingmarlet in the region s estimatedo be cl.os-eo U.S, $ 7 billion annually"Evenwith its superbPlrfopance, PAGCoR hasbarelv appea ts shareof the market.The'.
' fhiltppin.ess,inavery ggodcompetitive ositionnol onlywrth ts Asianco.unteqp4rtsutalsowith casinosn theU.S-andErIope.wheremany. layersstill go to satisfy heirtastefor higlr-pricedgaming:Ttte Philippines'closenesso the main gamingmarketsn the
Ieglqn,gqod ouristdestinations,ndwarm; riendly,andEngiish-ppeakingeopleput it
in goodcompetition,-u :
.' In line wittl its expectatiooo, an even more promlsing ufure,pAGCOR isdeterrninedo mplerne5rtts expansio,l rojegts, arryout asustained verse4s arketing
offensive, nd"positiol.itsasinos s heworld's riendriest.. ,'Havins
lped its tamished mageof p1e-EDSA'yearsnto an inspiringtask,PAGCORasanihoredt *unaute n"a .;il nrion- to makeh. ,"**rajserve its mandateof raising fund; for the philippine go,r.*rn.rri, ,r.r"*;*;;;;endeavorsnd vin thenation's rustby conductingts affairswith utmostprobity.n its1998annualplanningconferencerom December to 10, 1997, opandmrddle-level:managers erechallengedo devise strategy-thatvould'enableAGCoRto overwhelmthe hazardsof the currentuncertain
economicatmosphere ndpreservets remarkableit the distinction s hephilippines'mostprofrtable
companyn 1995 nd n 1996.
.5
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Igl-CAsE oF srlgr rvr"rcnnle HnaTroN INoNEoF pAcCoR,sc4.sri{oFILIPINOBRANCEES :
-_ -_
The subject,of his study s th9 slot'm4chine perationn oneof pAGCOR,s
casrnos'The branchs one of the newestadditions o the CasinaFiilipinoc-hain.t islocatedn anareawhere radeand ourism hriveby dayandexciternent bounds t'night.Dancing,dining nightclubs,discos,gourmetrestaurants,afes,and other centersof .
entertainmentbckono touristsand ocalsalike.
A few yearsago,the branchh4{ only 41 tables o: black ack, craps, oulette,baccarat,mini baccara!,1d studpoker. ts slot machineshen were2ztr.'Inline withPAGCOR'song-termgoalof modernizing ll its casinoL ngputting hematparwith the. :
best n the world,the branch odayhasmore han4l tablesandaddedbingoasanothertablegame' ts slotmachines ownumber277iThelranchalso ecentlynauguratedtsnew VIP Room o accommodatehe casino"s rolvingnumberof guests. he nervVIpRoom tself has ablegamesor big baccarat,mini bacc'arat,oulette,andsfudpgker.Allin all, henew oomhas15gameables ddedo theexistingabres.
Unlikemanycasingsn theU:S.,wherehegamin*^r.u is usually unoundedyslotmachines,hebranch. asa gaming'areaocatedat thebuilding's ground loor and a
slot machinearea ocatedat the basement. ccording o someoperationseople,casinoguestsvhoplaygenerally refera relativelyquietgamingarea hat s insulatedrom thenoise of slot machines.Slot machineplayers,on the other hand, geneially ike a"shrouded"ateawh'ereheycan play withoutbeingbothered y surpriseencounters,,with friends ndotheracquaintances.
' The slotmachineoperations under he direit responsibility f theSlotMachineSectionpleaseefer o Figure for theorganizationalhart).Thesection ead eportsothe branchmanager
nd s responsibleor theoverallmanagementf theslotmachineoperation' heassistanteads sist thesection eadn themanagementf theoperation.Thesupervisors,n theotherhand,are esponsibleor the proper ontrol.andonduct fslot machine operation.The senioi and junior techniciansperform the rrg.rlarmalntenancehecksand needed epairson the machines.The slot machineattendantspreparehedocumentationuringackpotwinnings, reditpayments,ndhopper efills.Theyalso ecord he dailyvolumeof players nd he daily engthof play imeson each
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i
niachine.TheSlotMachineSection as okenattendantsho rove aroundhearea o sell
tokensto.slotmachinelayers. hey actuallylbring o the players he needed okens
Figure1-SLOT
M{CHIMSECTIONORGANIZATIONAL IIART
' 1 r ' J
to helpdecongesthe okenboothsof theTreasurySection.This system ot only helps nincreasinghe average lay timeson the machines ut also enhanceshe competence f
the casino to serve its customerswell. The network controllers ake care of the
maintenancendproperuseof slot machinenterfacecontrollers.',Theylsopreparehe
. routindSlot MachineSectioneports.
Like otherCalno Filipino operations,he branchs relentlessly odernizingts
facilitiesandcontinuouslymplgving ts-operations. s.part o{the qug.s!or superior
performance,anagement ould ike to evaluatef thecurrentmix andplacement f slot
machines o 5T leadin=gocationsand heir extended roupsare still favorableas far as
maximizing etreceiptss concerned.earlysix monthshavepassed ow since he ast
reassignmentf slotmachinesookplace n the area.The diagramn Figure2 represents
t}resevenstrategicpointsand the leading ocationsof slot machines n each strategic
point.The diagramalso hows heextendedgroupsforach eadingocation. able2
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Figuri 2 - LAyouT oFsLOT MAcHIti{EAREA
Fl98
Fl75F188
F177
El47
ET46
ID130
cl16
c101
RestRooms
GCr222
G22sGl83
/A2II MO
Mrz A163
At544.139 ' ,
8124
Bl73
F43
8108 c10QC44 C68at_.
c27c26
SlotMachineSectionOffice
EntranceromParkingAre4 Treasury
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' , '1"
't,
: , i l
tl, I
. ' l
9
STRATEGICPOINT ,
Tab|e2- LEAI}INGSLOTLOCATIONSWITHINA STBATEGIC OIM
LEADbIGSLOTTOCATIONS
c
D
G
At4:1otL,Al39, l54,AI55,A182,At63,A2l l , 70
8221, l0g,8173,123,8124,l38
clol, c116,cI00,44 , 68,c27,c?:6
DI17,D130, l31,DD7, I66,D96;D73,D63,D32
Et46,Et478162, 9l,E7 ,E57P.43,E46, 193, l68
F109, i77, l88; 175; 198,199,F 2 0 6 , F g l , F 2 l , F 2 0 , F l , F 4 9 ,
G222,Gt83,G225,G703
Table3- CUnnEl,frASSIGNMENT f"SlOr MACHINESN EACHLEADINGLOCATION
STRATEGrc OINT LEADINGSLOT OCATIONS MACHINETYPE
A 1 4a2t2A l39Al54A l55
At82Al63A 2 l lA70
B22lBl08Bl73Bl23D I L q
B l38
c10 tc l 1 6cl00
c68 .f a a
e26
Dl 17D l 3 0D r 3 lD97Dl66D%D73D63D3 2
PlORaiseDrawP 5 M a g 7 _ .Pl0 DoubleDragonPlO DoubleDragon'Pl0
DoubleDragonP10RaiseDrawP105-WayLotusP5 N{ag7
' PlORaise raw
P5 N{agicCashier
P10TripleCasb
PlO DiamoudWinners
Pl0 Wild RosePl 0 BlackGoldP10DoubleDragon
'P30BlaokGoldPl0 BlackGoIdP30RaiseDrawP5 DoubleTake
. P5Blpck & White
P5JewelChest ..P5JewelChest
P10BlackGoldP10BlackGold
'PlO DoubleDragonP30RaiseDrawP5.Double akePI0 TripleCash
' P5 ScoreboerdP5 ScoreboardP5 Scoreboard
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10
Continued.. Table3 ,.
STMTEGICPOINT LEADING LOTLOCATIONS MACHINETYPE
G
. . .E t4$El47Et62 .
E9 l. E78
F.57843F.46El93Erer
F109'Ft77
_ Fl88Fl75n98
. Fl99F206
. . F 8 l
F2IF20 .
, F l'!4e
G222Gl83
. c225 '
G203,
Pl0 DoubleDragonPlO DoubleDragon
'
PlO DoublcDragmPlO TripleCashP5ScoreboardP5Scoreboard1
. P2GoldenCalesaP2GoldenCalesaPlO TripleCashPlO Diamond ine 87
PlO RaiseDrawPlORaiseDraw'PlO RaiseDraw'
. P5PokerRealP5Rapid5-WayP5SummerVacationP5 vlag7P2GoldenCalesa ' . .
. .P2GoldesCalesaP2GoldeirCalesaP5GirmevfakerP5TenGrandGame
' :. P5 JewelChest
P58 Ways lltimhtcP5PokerRealP58 WaysSuperior
TAbIC4 - NTIMBEROEMACHINES IN TIIE CURREM lflX AND ASSIGNMEI{T
MACHINEMIX NUMBEROF ACHINES IDENTITYCODE
Ia
6
8
I^
' 1
. tA
I
I
2I
). | ,
P30BlackGotdP30RaiseDrawPl0 RaiseDraw
PiODoubleDragon
P105-WayLohrsPI0 TripleCashPl0 DiamondWinnsrsPl0 Wild RosePl0 BlackGotdPIQDamondLine87P5Mag7,,P5MagicCashier
P5 DoubleTakeP5Black& WHteP5JewelChestP5ScoreboardP5 PokerReal '
,P5Rapid5-WayP5 SummerVacationP5 GamcMakerP5 TenGrandGameP5 8 WaysUltimateP5 8 WaysSuperiorP2GoldcnCalesa
3OBGI. 3ORDI,3ORD2
l0RDl, l0RD2, 0RD3, 0RDl,IORDs,IORD6IODDI, ODD2,1ODD3,OD}{,IODD5, ODD6, ODD7,ODDSroFwloTcr;0Tc2,l0Tc3,0TC4IODWIIOWRIIOBGI,OBG2,OBG3,OBG4IODLI5M1,5M2,5M3
5MCl.5DTI,5DT25BWl5JCt,5JC2,5tC35SBI, S82, SB3,SB4,SB5sPRI,5PR25RFI5SVI5GMI5TGGl5EU1sESI2GCI, GC2, GC3,GC4, GC5
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11
TAbIC - AVEMGE MACHII{E DATA
MACHINE TYPE / C'ODE
NUMBEROFPLAYSPERMINUTE
P30BlackGotd 30BGP30RaiseDraw 30Rti
. PI0 DoubleDragon/ ODDPI0 BlackGotd lOBGPIODamondLine87 / t0DLPlO DamondWinners l0DWPlOWitdRose/ OWR
.. PI0RaiseDraw/ l0RDPlO5-WayLotus l0FWPlO TripteCash tbtCP5Double ake/SDTP5Black& Whire/5BWP5 TenCnandGamel5TGP5GameMaker/5GM .
P5Rapid5-Way/5RF.
P5Surnmer acation 5SVP58 WaysUltimate/5EUP5 8 WaysSuperior 5ESP5Scorebodrd5SBP5lvlagT 5MP5MagicCashier 5MCP5JewelChesr/5JCP5PokerReal 5pR
'
P2 GoldenCalesa 2GC
5
J
J
J
J
J
J
J
J
4A
44 'I
44
' T
+' 4
4444
' ,
TAbIE6_ 24-HOURAVERAGX NI]MBE[. OF PT,EYTNSPrR MACHIM TYPE
MACHINETYPE STMTEGIC POINTS
29132 ll 020t 922. 7l 9t228
l 92 l) \278
22T225232 l122225
1' )
6I AI t
) l
I U
7I
t tI N
2I J
z5
8t rI t
9I At a
2 ll r
l 6
2 lI J
t <
9l 2) l
l 5a ,
2A8
LV
l o
I Il 512
o
8t 0t66
I 320T42 l20l )
P30BlackGold. P30RaiseDraw
Pl0 DoubieDraeonPl 0 BlackGotd-PIODiamondiul:eFilPI0 DamondWinnersPl0 Wild RosePlORaiseDrawPl0 5-WayLohsP10TripleCashP5DoubleTakeP5Black& Whits
P5 TenGrandGameP5GameMakerP5Bapid5-WayP5SummerVacatiohP58 WaysUlrimareP5 8 WaysSuperiorP5ScoreboardP5Mag 7P5MagicCashier
. P5JowelChestP5PokerRealP2 GoldenCalesa
2 6 'z>
2 l. 7 ' , '25l4I I25 1272 4 . ,a /lL'
t l5t t
526a ,
2227
7zo
t 82822
2227' 6
' 2 8
z3
L I
25l 26
. 2 627
zvt2v
J
222 1zot <
z )
25t 7t 025
2U
t 0] U
1 29
20221 A
222829
2 l1' '
t o
2028232 1I t
l 9I 68
l 9
21t
. t t
1 2. A
I' t
l 567
l2
23)8
1 At n
. 8J
6-t J
)2
1 n
5t 4
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t2
Table -il-loIJR AyERAGELAyrrMEs(inminutes)ERpLAyER ERrvrAclrrNE
MACHINETYPESTRATEGICPOINTS
. 6. l l
87
127
25)
l 0t5
' 3
l 5zv
6. 1 5
it .
l 02
125
'12
1 56
. 4. 7
. J
A
), 2
355
. 7J
2 l8
l 0. o
, 4l 0306)
l 4I 61 98
. J )
P30BlackGotdP30RaiseDraw
. PlO DoubleDraeon:P 0 BlackGoldPl0 Diamond ine87Pl0 DiamondWinnersPlOWild Rose ,
PlORaiseDrawPlO5-WayLoh6PlO TripleCash
' P5DoubteTakeP5 Bldik& White l
P5 TenGrandGambP5 GameMaker
P5 Rapid5-WavP5 SummerVaiationP5 8Ways JltimateP5 8 WaysSuperiorP5 ScoreboardP5Mag7 . . :P5 MagicCashier
. P5 Je'welChestP5 PokerRealP2 GoldenCalesa
' i
)7
l n
. 325)
l 2. J
1 I
. 2 0
l55
l425,'
' s' 5
23t o
)z v
25I 57
4035J I
J
2412293 l20
. .251 8
25t2
. 2 1
5. 2 2l 5l o
. 3 4
45.
. 3 2t7
. 2 8303025t (
J O
l ) . .
35J. '
2640
23' 5
27z5
l 4251 9 .27A Il l
)+
+z
249
'35
. ) t
6J.f
20to
740
. 3 5
r4', 2s.' 1 4
t235283538t t
25. Aza
25t v
, ll l
. , 1
z )
38z+
l 93923344 l4532
2 l, 6.32206
J J
2)
3 0 .453037
summarizeshe eadingocationswithina strategic ointwhileTable3 lists he current
T*-"no assignmentf srotmachinesn eachreading ocation. able ,,;; ; ;;.;of slotmachinesn thecurrenimix andassignment.able5 containsheaverage umberof playsper minuteof play time on eachmachine ased n .u.tn"; Table6provides he dataon 24-houraverageo.lume f prayers n ail machinesuk.rr;;;;r;strategic oint'Table7, on theotherhand, ontainshedataon 24-hour verageengthofplay timesperplayerpermachineypeat eachstrategic oint.Slotmacfune itendantstookthedatainTables6and7forthelastthree-ontn,]
machinemix andassignment.anagementasdeterminedhatslotmachines;;consistentlyttractcustomers. ithermachines f various ypesor machines f similart't'pesma1' herefore e groupedogethern sucha way thateithermix throughoutheareas positionedn roughlyhesame roportion s hoiemachinesssigned.; ,;.;;stra.teglcoint. As required'bymanagement,lot machineo**r,-o-nt* ;;t;"-;Filipinobranchmustahvays avealternativemachinemixes*rrn *n,.n to comparehe
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13
of thegrr-entmix. Table 8 provides the alternativemixes of slot machines n the case
branihunderstud i . ' ' '
Table8 - ALTERNATIVE NIXES OF SLOT NTACHTNES ErNG CONSTDERED
MACHINEMIX MIX I MIX2 MIX3 MIX4
P30BlackGoldP30RaiseDrawPIORaileDawPl0 DoubleDragon.P105-WayLotus'.P.lOTripleCashP10DiamondWinnersPlOWild RosePIOBlackGoldPl0 DamondLine87P5Mag7 . I :
I 3l 2a
222J
2
2
7
22.2I
I2
, 2
2
P5MagicCashis .'P5DoubleTake '
P5Bldck& White'P5JewelChest ' .
P5Scoreboard :
P5 PokerReaI'P5Rapid5-WayP5Summer acationP5GameMakerP5TsnGrandGameP58 WaysLTltimateP5 8 WaysSupe.rioqP2GoldenCalesa
2I
' t' I
r ' ' lI
I: l
2I2II
30
22 .It
. t
II
tI
t 4 l o
The casino's resent ystem f mixing and assigning'slotmachineso strategic
pointsdoesnot use he conceptof the assignmentroblemas a distribution roblem.
Howevgr,he present ystem lsoconsidershe ypesof machines nd, or each'machine,
the-agtual
aily-averageet receipt,numberof players, nd engthof play times even
though t is reiativei,=- -
juOg*.otrf u"J not as mathematicallyigorousas the
assignmentroblem. hebranchoperationstaffprovided o information n the actual
daily averagenet rec-eipt ei machine ype to the author. t was ust describedas the
amount eft to the casinoafterdeductinghe amountof machinepay outs, ncluding
players'ackpots, nd he refilli, or amount eplenishedn a machine y the casinodue
tg pay outs, rom the amountcollectedn the dropbox. It was i:rtherspecifiedhat net
receiptsroma slotmachine ctually arywith machineUpe. n absencef actual igures
on net eceiptsromamachine,t washowever evealedhat he hold rate or all machine
tlpes s 8 percent n theaverage. hehold ateof a machines defined y the operations
staff as the ratio of the amountof casino'snet rvinnings,ncludingackpots, rom a
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T4
machine o the amquntollected in the dropbox inside a machine.Asidefrom the fact
that customers assing lose o anyslotmachirieg1oupwill take he first emptymachine
!o play, there.isalsoa generalperceptionamongslot machineoperations eople hat:
customers suallyplay ongeron slot machinesocatedn theareasnear he okenboothsandnear he rest ooms. ,
,
TIIE PROBLEM
Ttie slotmachineoperationn the particularCasinoFilipino branchdescribedn
thispapers in theprbcessf appraising hetherhecurrentmix andallocation f itsslot
machiness Still relevant itt ief.rence to the presentprrfrrrnrm of customers. he
currentassignments already lose o six monthsoid andmanagementeels hat a review
of thepresentmix andassignmentf machiness already eeded. ssentially,hereare
two sidesof theproblemn the case.One s that of knowingwhethera new'mix and
assignmentf machiness neededn theslot machine rea: heother s that of knowing
what mix and assignments needed.Figure 3 is the schematicepresentation f the
problemn the case.
Figure3 - CASEDECISION PROBLEM ILLUSTRATED
Crurentmachinemix andassisnment
Evaluation f currentmixandassignmentf
slotmachines
newmix andassignmentf' I
slotmachine
Evaluation f alternativemixesandassignmentsf slotmachines
(Mix I, Mix 2,Mix 3, andMix 4)
Whichaltemative il l maximize aming otentihl?
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15
' : j
MAJOR OBJECTTVE
:'
The major objectiveof the study s to recommend machinemixandassignment
thatwill maximize hedailynet receipts hatcanbe earnedrom the slotmachines{n the
casino,This can be doneeitherby using he casino'spresent ystemof mixing and
assigningmachines r by using hemoremathematicallyigoroirsassignmentroblemas
a distribution roblemor a special ype'of linearprogramming roblem'(Turbannd
Meredith, gg4)..This tudymadeuseof the attermethod.
AREAS OF CONSIDERATION
: '' " " : i : ; 1r r ' ' : t : ' - "
ihe iollowing iactorsareconsideredn thestudy:
o Thedesignatedtrategic olntsand he eading bcationsn eachstrategi.cgint.. :
oTheaveragenumberofplaysperminuteoneachmachine.
. Thecurrentmix andassignmentf slotmachinesn eacheadingslot qcation.
o The 24-houraverage umberof playerspermachineyBe n eachstrategicocation.
. The 24-hour average engthof play per playerper machine ype in eachstrategic
location.
. Thealtemativemixesof slot machines eingconsideredy thecasino.
average oldrateof 8 percentor all machines.
. Theminimumallowable mountof bet hat canbeplacedby aplayer or eachpull.
. The endency f customerso take hefirst emptymachine o playas heypassclose
to anystrategrcocation.
l Management;sinding hat slot machines sa graupconsistently ttracts ustomers.
o The branchf quest for superiorperformance eading to - high profitability and
customeratisfaction.
o I neorgaruzauonf thebranch'SlotMachineSection.
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-:..'>
t6.
NTSCPTPTIONOF'THE METHOI)
^..
Accordingo Turqan ndMeredith 1994), istributionrobler.nsrespecialypesof linearprogramming roblems ndcanbesolvedby efficientcomputationuftror"d*.,because f their speciar truchne.one type of distributionprobrem, , tr,, ;r;;;;problem' t involves finding the bgst.one-to-oneatch or eachof thegrvennumberofcandidates'
to a numberof 'posilions""(Tunban ndMeredith,1994).parameterslike
:"::* benlfits 4re nvorvedn eachurrigom.nt,with theobjectiv.
"t;t*;;;;;;;osts r.maximizingbenefits.,:'.
.
- 1
"
"
1 :. ' j .
Asnmprtd'ii of theAssignmew roblem
describedin this paper s tlpical of a classofassumptionsf the assignment roblemcan be
TheAssignmentproblem asa Linear program
Th;assienmentroblemn thdcase anbeexpressedsa specialypeof linear
programming roblernwith the ollowing ormulation:
r l l l n
lMu"imizeTotalNetReceipt: X Z pr*,
i : l j . : 1 , , . u
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17
Subject o the iinear constraints balancedcase):
n
E Xt : I i : l , 2 ,3 ,4 , . : ) ,r l l
j : l
' .
m.lrr
L x i :1 j :1 ,2 ,3 ,4 , . . . ;n
i : l : . ,
e valueof xi;: I
meanshere s a matchbetween andT; hevalueof x4 0 means here s
atch.om
' - - -Whe-Ig. I -- l ,. P4: thedaily average etreceiptassociaied ith anassignmentf i to7.
Xy= 8nassignmentf ttre rthslot machine o thelh leadingocation.
' . '
. 'Accordingto TgrbanandMeredith 1994), theaSsignmentroblem s'usually
balanced roblemwith n items o be assignedto objects." hismeanshat f thereare
57 slot machineso be assignedo SZ gading ocations,as n the casedescribbd y this
paper, there are 57! (57 factorial){iffere.ntsolutions q the problemor 4 05 x 10 76
solutions. urbanandMeredith 1994)call this the complete numerafionpproach. n
the caseunderstudy, his approachs impracticalbecause f unmanageablyargenumber
of solutions.
This paperemployedhe Hungarianmethodof solving he assignmentroblem
through he use of the QSg+ Version2.0 software Changand Sullivarl 1991).
Accordingo TurbanandMeredith 1994),he Hungarianmethod is the mostefFrcient
way of solving argeassignmentroblems." he procedures based n the following
theorem: lf onesubtractsor adds)a constant umber rom all entriesn anyrow or
column of the assignment. atrix, then the total cost of each of the n! possible
assignmentss reduced or increased) y the constantnumbersubtractedor added)"
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t8
(Turban ndMeredith,1994). evinet.al. (lgg2) call theHungarianmethodheFlood's
lechrique.Figure4 showshe lowghartof theHungarianmethod.
' 'Figure4-FLOWCIIART
OFTIIE HTNGARIANMETIIOD
Arrangeproblemasa table
' . '
Subtract ll entrics romlargestory n able
Improvable olution:Identi$ smallest mcoveredcntr,v,
l. Subract t fromall cellswithout ines.
2. Add it to all cellswithintdrsectingines.
3. Cellswith one ine emainunchanged.
Result=
Improved olution
IdentiS optimalsolution(s)
y makingsssigmgnts ozrro.valuedcells n one-toooematches
Calculateostor -prolit ofassignrirenty .rcferringto original able
columns)
Source:TurbqnandMeredith.1994
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20
assignmentroblemobjectivehasalwaysbeen o maximize he totalnet receiptof each
altemati-velot machinemii, It shouldbe notedagain hat hetotalnet eceipts omputed
by the four altemativeassignmentsreall basedon the minimum ailowablepmountof
betthat canbeplacedbya player or eachpull on a Slotmachi-ne.his s so because oinformationon the actuaidailyaverage et receiptpermachine fi wasprovidedo the
authorby theoperations taff.
The assignmenteneratedn Exhibit 3 is the computer inal solution or Mix 1.
The assignment eneratedn Exhibit 4 is for Mix 2. For.Mix 3, the assignments in
Exhibit5, and or Mix 4, n Exhibit6.' -
t ; r " ' - - - " . -
The assigiiiieni in Exhibit 3 yielde-da ma4rmum total riet receipt of Php
63,776.09 er 24-how d1y Mix I containsmore machipes
in lhe
Php 5- andPhi 2-
denominationsthanmachinesirithe.Php30-andPhp10-denominationsml
The assignr4entn Exhibit 4 lelded a maximum total nef receipt of Php'
, j
158,854.8er24-hour ay.Thisassignment asgeneratedsingMix 2. This alternative' mix containsmoremachinesn thePhp30-andPhp 0-denominationshanmachinesn
the owdrPhp5- andPhp2denominations,n otherwords,Mix 2 mraybe onsideredhe
oppositeversionofMix. ' ,
Exhibit 5 yielded he'assignmentor Mix 3. The maximum otal net receiptper
24-hourday basis s Php 115,882.Mix 3 is differen, Ao* the two:othermixes ust
describedabove. tt containsan almost equal number of machines n all the four
denominations.herea1e
14 Php30denominationmachines, 4 Php 0denomination
machines,15hp5-denominationachines,nd14Php2;denominationachinqs.
Exhibit 6 containshe computergenerated ssignmentor Mix 4. The total net
receipt or themix is Php125,362.7er24-h9ur ay,Mix 4 containsessof thePhp 10-
andPhp5-denominationachin'eshan hePhp30-andPhp2-denominationachines.
Of the ouralternativessignments,he assignmentor Mix 2 is themostsuperior
assignmentn termsof maximizinghe casino'sotalnet:receiptrom ts slot machines.
Even if the casino'scurrent mix and assignments included n the analysis, he
assignmentor Mix 2 is still the mostsuperior. ts maximum otal n9treceipt s actually
3.47 imesmoresup€riorhan hetotal net receipt hatcan be derived rom the casino's
currentmix andassignnlentf slot machines. he currentmix and assignmentf slot
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2r
machinesn the casino s actually he most nferior assignmentn terms of maximizing
the otalnet ecei$thatcanbeearnedromtheslotmachines ivenall the factors hat.are
consideredn the solutionsanil the assumptionsf the assignment rgblemasa special
linearprognmming
problem. . ' . ::
^ - - * - -CONCLUSION ANI} RECOMMEI\DATION
, :
Bas€don the solutionsgenerated,t can be concludedhat the currentmix and
assigrurlentf slotmachinesn theCasinoFilipinofrancfrunderstudyshouldbe replaced
with a mix and assignmenthat can maximize he casino's otal net receiptfrom slot. . . - . :
machineoperation.Mix 2 is therecommendedmix thatcanyield anoptimum assignment
of machines. hetotalnet receipthat canbe reatized y the'casinof it uses his mix is
Php 158,854.8er24-hourdayorPhp57.98million p€ry€ar. t bansubstantially ive he
casino he needed oost n termsof maximizing ts total net receipt.As it is now, the
currentmix andassignmentf machinesn theslotmachine reahas he owest ealizable
totalnetreceiptof onlyPhp 4s,743.36ailyor php 16.2million per year:
. Table9 lists dootr the recommended ix and assignments f slot machines. he
hEavl clusteringof high denominationmachinesn leadingslot.locationsof strdtegic
pointsC, D, E, andF isvery noticeable. igure2 showshat the samestrategic ointsare
actuallyclose o the tokenbooths A i"*t rooms.Furthermore, ablesO na I revealo
that sJotmachinesocatedat strategic oints'C,D, E, and F have relativelymuch higher
utilization han heothers theyhavehighernumberof playersand onger engthof play
times'These'confirmhat the generalperception mongsiot machineoperations eople
that customers suallyplay longeron slot mzrchinesocated n the areasnear he token
boothsandnear herest ooms sactuallya reality.
Tebh RECOMMENDEDrx(Mir2)exo essrcrurltNT Fsr,or uecrnms
STRATEGICOINT LEADINGSLOT OCATIONS MACHINETYPE
4 Al4A2t2A139Al54
. Al55Al82Al63
PlO 5-Wayl-ohrP10 5-WayLohsP5 lvlagic CashierP5 Ten Graad GarnePJ Jcwcl ChestPlO WildRosePlO WildRose
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22
Contiuued .. Tabl€ 9
STRATEGICOINT LEADING LOTLOCATIONS MACHINETYPE
D
A2l lNO
B22lBl08Bl73Bl23Bl24 :Bl38
c l0 l .c l 16cl00-_c44c68c27 ..c26 |
D l lTD l 3 0 'D l3 lD97Dl66D.86.
D73D63D32
El46El47El62E9 lE78
F,57f ,+ J
EA6tr I tJ
El68
FtosF171Fl88Fl75Fl98Ft99r/uoF8 lF2rF20
FIF49
0222cl83o225G203
P5 SWays Ultimate .. P5PokerReal
P2GoldeaCalesaP5MagTP2GoldenCalesaPlORaiseDaw.Pl0 RaiseDrawP5 GameL{aker
P30RaiseDtaw. P30RaiscDraw I
. P30 RaiseDrswPlO DiamondLine 87ElO RaireDrawP30RaiseDraw
.P30RaiseDraw'
. P30Black GoldP30Black6oldP30Black GoldP30BlackGoldP30Black GoldH]0BlackOold.P30BlackGoldP30Black GoldP30Black Oold
P30BlackGoldP30Black GoldP30BlackGoldP30Black GbHP30 RaiseDrawP30 RaiseDrawP30RaiseDrawP30 RaiseDrnwP30RaiseDraw
, P30RaiseDraw
Pl0 DoubleDragonPlO DoubleDragonP10TripleCash
. PlO Triple cashPl0 DamondWinnersPlO Diariond WinnersPlO Danrcnd WinnersP5 SummerVacstionP5 DoubleTakeP5 8 WaysSuperior
P10BlackGoldPlOBlackgold
P5 ScoreboerdP10DarnondLine 87P5Rald 5-WayP5Black & Whitc
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REFERPNCES
B\rsiness ertiqq 2.0.Prentice-Hall: nglewoodCliffs, New Jersey' .
I-evin,RichardL, David S.Rubin,Jobl P. Stinson,andEveretteS. Gardner, r. (1gg2).
Ouantitativeooroacheso Manasement.6 ed McGraw-Flill: ew York.
)-
PAGCOR's'1996s*l Reoort.
-
, -
- - - , - : ^ - - ^ - ^ ^ - - l a l f t
. . :
. - : _.
.. . : . . : . : . : . .
. - . , j
Turban,EfraimandJackR. Meredith 1994).Fundamentalsf N{anagemdntcience. 6
. . ed. rwin:Bun Ridge, llinois.
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24EXHIBITMATRIXOF DAILYAVERAGE ETRECETPTSinphitippineesos) F sLoT MACHINESN ALLSTRATEGIQOINTS
Machine ype
P30BtackGoldP30RaiseDrawP10DoubleDragon
:
P10BlackGoldP1 0Diamondine87P10DiamondWinnersP1 0WildRoseP10RaiseDrawP10SWayLotusP10TripleCashP5 DoubleTakeP5Black& White
'
P5TenGrandGameP5GamaMakerP5Rapid Way
'
P5Summer acationP5 I WaysUltimateP5I WaysSuperiorP5 ScoreboardP5 Mag7P5 MagicCashierP5JewelChestP5 PokarReatP2GoldenCalesa
259.20172.80252.00'252.00576.00144.00480.00240.00662.40115.20193.6072.00
384.00144.0064.00
224.O0040.00: 19.20
62.40160.00515.20403.20160.00278.40
B
345.60302.40100.80201.60
,120.0033.60
336.00168.0033.60
156.00772.8A
.102.40.176.0086.40
' '99.60
'336.00
528.00153.60'192.00
470.40332.80212.8064.00,
336.00
.c .
4,680.003,132.00
352.80672.O0
2,100.001,041.60. 79.201,440.00
777,601,670.401,190.40
480.00.680.00't44.OO
1,040.00460.80739.20
,
216.00739.20168.0066s.60979.20
. 940.80633.60
D
6,681.601,591.201,;411.20
720.O01,440.001,140.00
792.00604.S0684.00
1,008.001,478.40
790.401,344.00
920.00216.00345.60809.60268.80
1,000.00699.20e07.20787.20
1,196.80672.00
E
6,494.40.4p82.40
460.801,545.602,097.60
979.201,140.001,123.20
331.202,121.60
'1 ,771.20.
2,088.00614.40302.4048.00
1,126.40672.OO249.60792.W
1,000.001,200.0o1;224.O0
480.00592.00
F
3,456.009E.00
1,512.001,065.60
129.601,584.001,056.00
974.40369.60
2,688.001,624.00
470.40.480.00582.40384,00
1,568.001,030.401,176.00
665.80516.80640.00307.20760.00673.92
G
.86,40
316.80211.20201.60575.00$1.2A240.00180.00144.00252.0057.60
552.00160.00'
?6.80336.00
51.2048.0015.20.
288.0040.0038.40
240.0048.00
215.04
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J.a
{+
f;.; .:.,
25EXHIBITDAILYAVEMGENETRECE|PTSh phitiryir,€eso6)FRoMTHECURRENTAsstcNMENroF sLor MAcHrNesteecumhg fii;;;;-;-#ril betperphy)
L€ading
SH€gic Sktft)int . L€tlns Macl*p Type
21-llopr 24-Hqr Ayora€B
A\€ragp Avefa€g NurnborNumber' .
llayTrne ofpbysd Phye6 (il mlrurtes) per Mirxrte
MiirirnumDrityAmountof Arerags
Eetper . N€tPhy Recsitrt
Hold ,'Rate
A .A14 p1oRei€€nw n . F,g .
B%,,
10 24o.m A212 PsMaez? ; .4 B% 5 160.mt3 9 pl0DoqbbDr?go.r.
.2 1 S.g
Ao h 10 2SZ.q 4154 plO Da.rbbDragon
. llg :lSRHlH'on 21 s ? s% ro zsz,FA{60 etO+WayLots
-- . -
?, ' r :
Fo' |?JITJ,* ?' , a 4, ;; . s 16000:B , {ir ;;il"n;;;*L n ,l ,
I Zn ir3
#.$t0e Horr i ;bca i i , . :i 3 ; , i
- ; ; , ,:10 1s6.oo1T3 pjoDiznondWnnera
: T ; 3. g%.. 10 g3.@, a1?3 Plowild Rce
; ; , 3 , B% ..10 so6.oo121. . plOBbckc,oH 21 1 3 s% io 2ot.6oi3g ploDo,rbt€Oragon14 j
3 g% 10 1OO.Bo cj0t P3oBbckcotd. ; ; ., 3 B% 30 4,680.00:lS .FSiHffi j ; ; il io 6126c44- '-o*"il; To ' :? i , :f * l:l$f6S. psBbck&White
15 n I OX 5 ,I8O.OOz| psJ€i , l€tch6t. . , i ; ; 4 . B% b grs.nD. ;fr, ::J#_.ffi ie ; ; # ; ;;;:.x
o13oproea.rc,oui3 S : ZA , ll, n;n131 pio Dotrbteragon 21 za ; ;; . jo 1,411.n
3:l if"ffi?tr il fr a s% 30 r,ss12oDe€ plorripr.c$h
fr."
3 3f .,i l,;#:#73 pSsqeboardx A 4 .B% g 1,0m.@
Bff f : f f i :2 : ,%4i ls r ,ooo.ooE - __llf prqoq,ur.o""s"r, ? _ . A*.._*: *_""3I _,_"***_rl*,;;H,SE147 plO DoubteDragon ;E162 p1oDoubh ragpn 6 g2 3 g% 10 4€o.eosJ plo rrif,ecasri 26 t 3 A; i 10 . 2,121.& : .EZB p5scoreboard.
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EXHIBIT 4_ QSB+SOrrW.rNS SOT.UITON OALTERNATTVESLOTMACfttNE I,']DK
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EXI{IBIT 5- QSN+SOFTWARE OLUTTONOAI,TERNATTVESLOT MACHINE MIX 3
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EXHIBIT 6 _ QSB+SOFTWARESOLUTION TO AI,TERNATIVE SLOT MACSII{E [fDT4
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| l l fq i . fgi? i i6owr r Fres I +1584 30RD2 | y\t7 i .1991 i i6wnr r Fzl | +1056 30RD3 | !1.92'i ' *1gg? i i6ecr I cz2z | +1056 30RD4 | l l l i .+9,2 i idpr,r I c100 I +2100 30RDs | !19 i 'l4qii
i irar r B22L | +470.4 30RD6 I !g? i *1gg? i i i icr I A21r | +5r.5.2 30RD7 | !19 , i .+gg? i 6i lrr I Fzo6 I +L6z4l_--: :P:__- 846 i * osi i i iwr I E16B +20RR-------
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