### Construct a simulation model of the system

Assignment Help Engineering Mathematics
##### Reference no: EM131524331

Question: OVERBOOKING, PART III

Consider again Mockingbird Airlines' problem as described in the overbooking case study.

1. Construct a simulation model of the system, and use it to find Mockingbird's optimal policy regarding overbooking. Compare this answer with the one based on the analysis done

2. Suppose that you are uncertain about the no-show rate. It could be as low as 0.02 or it could be as high as 0.06, and all values in between are equally likely. Furthermore, the cost of satisfying the bumped passengers may not be constant. That is, the airline may in some cases be able to entice a passenger or two to relinquish their seats in exchange for compensation that would be less than a refund and another free ticket. Alternatively, in some cases the total cost, including loss of goodwill, might be construed as considerably higher. Suppose, for example, that the cost of satisfying an excess customer is normally distributed with mean \$300 and standard deviation \$40. Modify the simulation model constructed in Question 1 to include the uncertainties about the no-show rate and the cost. Do these sources of uncertainty affect the optimal overbooking policy?

3. How else might Mockingbird's analysts address the uncertainty about the no-show rate and the cost?

#### Questions Cloud

 Security rights from within an operating system : How do you administrator basic user and group security rights from within an operating system? How do you configure password policies? Identify any security controls that need to be implemented : The plan should cover all layers of the OSI model. Identify any security controls that need to be implemented to assist in mitigating risks. Identify two ways a swap differs from a parallel loan : Identify two ways a swap differs from a parallel loan. Calculate interest savings for each firm relative to market and the total profit for the swap broker Network wireless router to enable a base level of security : What configuration changes would you make in a network wireless router to enable a base level of security? Construct a simulation model of the system : Suppose that you are uncertain about the no-show rate. It could be as low as 0.02 or it could be as high as 0.06, and all values in between are equally likely. Assist in organizational decision making : In addition, explain why mitigating risk and making better decisions are essential to operational efficiency. How has technology aided inventory management : What are some of the ways in which a company can reduce the need for inventories? How has technology aided inventory management What medications did you purchase from an online pharmacy : The data that organizations gather about their user can vary between strictly commercial information. What medications did you purchase from an online pharmacy. Non-receptive you would be to the salesman sales pitch : Explain how receptive or non-receptive you would be to the salesman's "sales pitch" and why,

### Write a Review

#### Find the probability of wining

Employee is terminated for refusal to cover or remove his confederate flag symbols as requested by his employer.

#### Check that how many defective items are found

Hemispherical Conductor produces the 80J84 microprocessor, which the Sayle Company plans to use in a heart-lung machine. Because of the sensitivity.

#### What issues did you account for in making each assessment

Many people deal with uncertainty by assessing odds. For example, in horse racing different horses' odds of winning are assessed.

#### Derive theorem i from theorem ii

Theorem I: An upper-bounded transshipment problem has no feasible solution if and only if there is a set S of nodes.

#### What is the probability that both stages are aver budget

The design stage (stage I) will run over budget if it takes four months to complete. List the sample points in the event the design stage is over budget.

#### Find the domain of the functions

Find the derivative of the functions and Find the domain of the functions - Find the tangent line and Write down the equations of any horizontal asymptotes for the function and Find the range of the functions

#### Probability that an employee will have a cold next year

A. What is the probability that an employee will have a cold next year? b. Given that an employee is involved in an exercise program, what is the probability that he or she will get a cold next year?

#### Prove that the price of an american option implied by a tree

Prove that the price of an American option implied by a tree will always be as much as the price of a European option with the same parameters priced on the same tree.

#### In what order should the shoes be repaired

William Beebe owns a small shoe store. He has 10 pairs of shoes that require resoling and polishing. He has a machine that can resole one pair of shoes.

#### Modify the code you wrote to solve problem

Plot In (L1(x1, x2)) over the region x1, x2 ∈ [-5, 5]. The model's degeneracy will show up as lines in the x1-x2 plane where the value of ln L1 does not change.

#### Population means for male and female salaries

1) Based on our sample, how do you interpret the results and what do these results suggest about the population means for male and female salaries?

#### Responsible for constructing

1. Assume you work for an oil company that deals with oil contracts and you are responsible for constructing those oil contracts. Assume you have an oil contract that has the following characteristics: Zero initial cost and the buyer pays S - F ea..