Assuming that full fare demand follows normal distribution

Assignment Help Operation Management

Reference no: EM132141628

Granite State Airlines also serves the route between Washington, DC (National), and Portsmouth, NH, with a single flight daily. The airline sells both discount fare and full fare tickets. The airline has assigned a 100 seat aircraft to the flight. Using Littlewood’s rule, the airline has determined that the optimal booking limit for a flight departing in two weeks is 40. a. What is the protection level for the flight? b. The full fare for this flight is $200 and the discount fare is $100. What is the expected full fare demand for this flight, assuming that the full fare demand follows a normal distribution? Hint: this question is a little bit tricky, but the given information is sufficient enough to determine the expected full fare demand. c. The flight controller has learned that the annual Yorkshire Terrier Fancier’s Convention will be held in Portsmouth in two weeks. As a result, he increased the forecast of mean discount fare demand by 50% over its previous value. The full fare forecast remained the same. What are the new booking limits and protection levels for this flight d. Right after learning about the Yorkshire Terrier Fancier’s Convention, the flight controller learned that, due to maintenance problems, there will also be a switch capacity. Instead of a 100 seat aircraft, the flight will be served by a 120 seat aircraft. What are the new booking limits and protection levels for this flight?

Reference no: EM132141628

Questions Cloud

Define core principles in health ethics : Of the four core principles in health ethics (autonomy, beneficence, nonmaleficence, and justice) which is the one that you feel is most overlooked.

More of the decision analysis models covered : Use a personal example or a text example or a business problem from the real world to illustrate one or more of the Decision Analysis models covered.

Identify the main issues with copyright and trademark : Burger King, the national franchise, is banned from opening a restaurant within 20 miles of Mattoon, Illinois. So, there is not a Burger King there;

When preparing the introduction to a presentation : When preparing the introduction to a presentation, you want to draw in the audience from the start.

Assuming that full fare demand follows normal distribution : What is the expected full fare demand for this flight, assuming that the full fare demand follows a normal distribution?

Explain how your plan meets the demand of each period : Explain how your plan meets the demand of each period, i.e., how much of regular, overtime and subcontract capacity utilized, while minimizing the total costs.

What is the number of relevant documents : What is the number of relevant documents that are not retrieved by the system?

Performance due to translation of system commands : One of the issues in early virtualization use was slow performance due to translation of system commands.

How someone might hack into your systems and commit fraud : Your boss is concerned that the company's computerized accounting system is vulnerable to attack. After reviewing the system, you're in agreement.

User Account

All Pages