The manager of an opera theater considers changing the overbooking policy of hisupcoming concerts. Customers make reserv
Posted: Fri Jul 01, 2022 8:50 am
The manager of an opera theater considers changing the overbooking policy of hisupcoming concerts. Customers make reservation online prior to the concert at nocost and make payment when they show up at the theater. The opera show is verypopular and all reservations is sold out on the first day. (You can assume that thedemand is the same as reservation limit). The theater has 300 seat and the ticketcost $50 per seat. Historical records show that about 9% of reservation holders donot show up. If the manager overbooks and more than 300 individuals show up,those who do not have seats will be given guaranteed reservations and VIP seats tothe next coming show. Moreover, to keep his customers happy, the manager giveseach individual who is bumped $20 worth of gift certificates. The manager currentlyaccepts 310 reservations.Use Excel to calculate the average profit over the 1,000 replications. Use scenariomanager to decide the number reservations the manager should allow. Try 310, 320,330, 340, 350 and 360, which one should the manager choose?
The manager of an opera theater considers changing the overbooking policy of his
upcoming concerts. Customers make reservation online prior to the concert at no
cost and make payment when they show up at the theater. The opera show is very
popular and all reservations is sold out on the first day. (You can assume that the
demand is the same as reservation limit). The theater has 300 seat and the ticket
cost $50 per seat. Historical records show that about 9% of reservation holders do
not show up. If the manager overbooks and more than 300 individuals show up,
those who do not have seats will be given guaranteed reservations and VIP seats to
the next coming show. Moreover, to keep his customers happy, the manager gives
each individual who is bumped $20 worth of gift certificates. The manager currently
accepts 310 reservations.
Use Excel to calculate the average profit over the 1,000 replications.
Use scenario
manager to decide the number reservations the manager should allow. Try 310, 320,
330, 340, 350 and 360, which one should the manager choose?
The manager of an opera theater considers changing the overbooking policy of his
upcoming concerts. Customers make reservation online prior to the concert at no
cost and make payment when they show up at the theater. The opera show is very
popular and all reservations is sold out on the first day. (You can assume that the
demand is the same as reservation limit). The theater has 300 seat and the ticket
cost $50 per seat. Historical records show that about 9% of reservation holders do
not show up. If the manager overbooks and more than 300 individuals show up,
those who do not have seats will be given guaranteed reservations and VIP seats to
the next coming show. Moreover, to keep his customers happy, the manager gives
each individual who is bumped $20 worth of gift certificates. The manager currently
accepts 310 reservations.
Use Excel to calculate the average profit over the 1,000 replications.
Use scenario
manager to decide the number reservations the manager should allow. Try 310, 320,
330, 340, 350 and 360, which one should the manager choose?