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Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 25 customers (with a standard deviation of 15) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $125. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $250. Super Discount considers the cost of flying the plane from New York ot Los Angeles a sunk cost.
Let p = probability of no shows being x or fewer (so if we overbook x + 1 seats instead of x, we lose $250 with probability p, and gain $125 with probability 1-p)
Up to what value of p is it profitable to overbook one more seat?
If Mercedes Benz realizes that its annual demand for 500SEL model is 50,000 and their cost of order preparations is $42,000.00 and the inventory carrying cost per car per year is $3,600.00. What will be the Economic Order Quantity?
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operation management best production plan for company selling antifreeze solutionaggregate planning casea firm produces
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(TCO All) For the next set of questions , you will first select ONE of the TCOs of the course. Then, you will be asked to write an essay about the project you worked on this term over your two companies' change program based on the TCO you selected a..
In the literature on signaling over additive white Gaussian noise (AWGN) channels, formulas are derived for probabilistic error calculations using the complementary error function.
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