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Managing inventory for a service can be a real challenge. Think about parking at major colleges and universities (perhaps even at your school). Most schools have limited parking facilities and student parking passes are in great demand. Since students drive on and off campus throughout the day, schools can sell far more passes than the actual number of parking spots, giving them a nice stream of extra revenue. But if they do that, some students will not find spots during peak class times. If, on the other hand, they sell just enough passes to allow everyone a spot during peak hours, many of the spaces will go unused during the rest of the day. Imagine, for a moment, that you are in charge of parking for a major college. How would you handle student parking passes? What are the pros and cons of your approach for both the university and the students?
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