Explain how many seats should jetred overbook

Assignment Help Operation Management

Reference no: EM13722086

JetRed Airways flies several daily flights from Philadelphia to Chicago. Based on historical data, the flight on Wednesday evening before Thanksgiving is always sold-out. However, there are usually no-shows so the airline decides to improve revenues by overbooking. The no-shows are Poisson-distributed with mean 8 and the airline estimates that the cost of bumping a passenger is about 10 times more than ticket price.How many seats should JetRed overbook?

Reference no: EM13722086

Questions Cloud

Aligning performance management with strategy : Imagine a performance evaluation system that promotes roles, behaviors, and work outcomes appropriate to achieve organizational strategic objectives throughout the firm.

Hrm adds value to the firm : Find an article through ProQuest that discusses the proposition that HRM adds value to the firm. Also, examine the topic of "Marginal Utility Analysis" and how it is used to make a case about the value of HRM.

Organizational pressures faced by the organization : Describe at least two organizational pressures faced by the organization and explain how those pressures may have impacted the change process.

Purpose of simulation project - solve an mrp problem : The purpose of simulation project is to provide you with an opportunity to use the POM-QM for Windows software to solve an MRP problem.

Explain how many seats should jetred overbook : JetRed Airways flies several daily flights from Philadelphia to Chicago. Based on historical data, the flight on Wednesday evening before Thanksgiving is always sold-out. However, there are usually no-shows so the airline decides to improve reve..

What is the companys total book value of debt : The book value of the debt issue is $70 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 12 years left to maturity; the book value of this issue is $100 million and the bonds sell for 61 percent of par...

Outstanding long-term debt : Calculating Cash Flows. Weiland Co. shows the following information on its 2014 income statement: sales = $167,000; costs = $88,600; other expenses = $4,900; depreciation expense = $11,600; interest expense = $8,700; taxes = $18,620; dividend..

Demographics of the population-levels of education : Describes the results of your assessment of the labor market from which your selected organization draws candidates for open positions. Explains the population, demographics of the population, levels of education, and how much training may be req..

Calculate the standard deviations of returns for goodman : Calculate the standard deviations of the returns for Goodman, Landry, and the Market Index. (Hint: Use the sample standard deviation formula given in the chapter, which corresponds to the STDEV function in Excel.) Estimate Goodman’s and Landry’s beta..

User Account

All Pages