How many high-fare customers are turned away

Assignment Help Operation Management
Reference no: EM131367024

Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night while the rooms are priced at $600 per night for the high-paying customers who generally arrive at the last minute. The demand for such high fare customers is distributed normally with mean 60 and standard deviation 25 (this standard deviation is high relative to the mean, but use it anyway). Assume that there is ample demand for regular-fare customers.

Suppose that Inn at Penn operates with the protection level of 80 rooms for high fare customers. On average, how many high-fare customers are turned away because of lack of rooms?

Reference no: EM131367024

Questions Cloud

Find example of product you have recently purchased : Find an example of a product you have recently purchased. Identify the logistics tasks that would have to take place in order for the product to be available for you to have the ability to purchase it.
Good recommendation to reduce the liability exposure : What would be a good recommendation to reduce the liability exposure and improve the ethical climate or the overall ethics of sexual harassment in the workplace how is it supported by specific legal, ethical, and business principles?
Explain why employee training is important : Explain the purpose of background investigations. What is PERT and 3-Point Estimate? Explain why employee training is important? Also discuss Why career development is valuable to organizations. Summarize Jonah’s suggestions to improve the current pr..
Sexual harassment in the workplace out of constitutional law : When it comes to sexual harassment in the workplace out of constitutional law, contracts, antitrust law, securities regulations, employment law, environmental law, crimes and torts which three areas of law applies to this area and why?
How many high-fare customers are turned away : Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night while the rooms are priced at $600 per night for the high-paying customers who generally arrive at the last minute. Suppose that Inn at Penn operates with the p..
The weekly demand for road salt in a small community : During the winter season, the weekly demand for road salt in a small community is Normally distributed with a mean of 800 pounds and a standard deviation of 200 pounds. It takes one week lead time to get more salt delivered. To achieve a 99% service ..
What other producrs might lend themselves to sampling : Food manufactures often set up tables in supermarkets and offer free samples to shoppers, along with coupons for the promoted items. sometimes restaurants offer fre coffee or drink refills. What other producrs might lend themselves to sampling? Make ..
What is the annual holding cost and reorder point : Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is estimated at 20% of product cost which is $50 per unit. Assume four weeks/month, lead time L is one week and demand rate is 250 units per week. What is the..
Describe a consumer-oriented sales promotion : Describe a Consumer-Oriented Sales Promotion you have experienced. Was it effective? Create a detailed Consumer Oriented Sales Promotion campaign for a company/product of your choosing? Design a contest or sweepstakes marketing campaign?

Reviews

Write a Review

 

Operation Management Questions & Answers

  Virtual private network-an extranet and intranet

List and describe three main capabilities or tools of a DBMS. Identify and discuss the major types of systems in a business from a constituency perspective. What is the relationship between these systems? What is the difference between a virtual priv..

  You are concerned about the cost of accepting this proposal

You are concerned about the cost of accepting this proposal, especially since it is not clear that LPL will realize any savings or additional revenue from the conversion.

  Different conflict resolution and political strategies

Discuss how Larger used different conflict resolution and political strategies to solve these conflicts to make better use the company's resources (Regarding conflicts, politics, and conflict resolution)

  Consider single server queuing system

Consider a single server queuing system. If the arrival rate (lamda) is 79 people per hour and it takes 48 minutes to serve one person. what is the average number of customers in line? What will actually happen, Jockeying, reneging or increase in sal..

  Find the reorder point necessary to provide service

The annual demand for a product is 16,000 units. The weekly demand is 308 units with a standard deviation of 80 units. The cost to place an order is $30.50, and the time from ordering to receipt is six weeks.

  Describing development of master demand schedule

Identify atleast 5 cases describing development of Master Demand Schedule or Master Production Schedule in a manufacturing or service organization.

  Which source of funds should you use

Preparing to buy a car that costs $36,000. You can pay for the car using an auto loan from the car manufacturer or using money from your home equity line of credit (HELOC). The auto loan charges 2.75% interest per annum. The HELOC charges 3.85% inter..

  What is innovation and why is it important

What is Innovation and Why is it Important? Innovation can be viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs. It is making decisions that change the status quo. Innovation means..

  Bureau of labor statistics has employment projections

The Bureau of Labor Statistics has employment projections by state and by occupation. Assign particular occupations for individual students or groups of students to research for your state using this site. Which occupations have higher and lower proj..

  Edermine the quantity of each component required to assemble

Given the following diagram for a product, determine the quantity of each component required to assemble one unit of the finished product.

  Between orders in days when optimal quantity is ordered

Pet Food Inc.: A local retailer of pet food faces demand for one of its items at a constant rate of 30,000 bags per year. It costs them $10 to process an order and $1 per bag per year to carry the item in stock. The stock is received four working day..

  Biblical servant leader and the contemporary servant leader

Conduct research about a biblical figure such as Moses, David, Paul, Joseph, Esther, or Nehemiah to learn about how the biblical leader exemplified servant leadership and see how the principles of servant leadership transcend time and place. Think ab..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd