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|At the Pleasant Haven Hotel there are 36 rooms. The profit earned when a room is sold for a night is $53. If Pleasant Haven overbooks, by selling more reservaitions than they have rooms and they end up having a customer whose reservation cannot be fulfilled, the loss to Pleasant Haven is $30 for that customer. Regardless of the number of rooms booked, the probability of one no show is 60% and the probability of 2 no shows is 20%. There is zero probability of more than 2 no shows. For a night when requests are exceeding the 36 rooms, what is the optimal number of reservations to accept? Assume there is no penalty for a customer who does not show up, i.e., Pleasant Haven does not make $53 on a customer that is a no show. What is the expected net for booking each of the following: (Net means profit minus any overbooking loss.) 36 customers 37 customers 38 customers What is the best number of book?

|At the Pleasant Haven Hotel there are 36 rooms. The profit earned when a room is sold for a night is $53. If Pleasant Haven overbooks, by selling more reservaitions than they have rooms and they end up having a customer whose reservation cannot be fulfilled, the loss to Pleasant Haven is $30 for that customer. Regardless of the number of rooms booked, the probability of one no show is 60% and the probability of 2 no shows is 20%. There is zero probability of more than 2 no shows. For a night when requests are exceeding the 36 rooms, what is the optimal number of reservations to accept? Assume there is no penalty for a customer who does not show up, i.e., Pleasant Haven does not make $53 on a customer that is a no show. What is the expected net for booking each of the following: (Net means profit minus any overbooking loss.) 36 customers 37 customers 38 customers What is the best number of book?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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|At the Pleasant Haven Hotel there are 36 rooms. The profit earned when a room is sold for a night is $53. If Pleasant Haven overbooks, by selling more reservaitions than they have rooms and they end up having a customer whose reservation cannot be fulfilled, the loss to Pleasant Haven is $30 for that customer. Regardless of the number of rooms booked, the probability of one no show is 60% and the probability of 2 no shows is 20%. There is zero probability of more than 2 no shows. For a night when requests are exceeding the 36 rooms, what is the optimal number of reservations to accept? Assume there is no penalty for a customer who does not show up, i.e., Pleasant Haven does not make $53 on a customer that is a no show. What is the expected net for booking each of the following: (Net means profit minus any overbooking loss.) 36 customers 37 customers 38 customers What is the best number of book?
Transcribed Image Text:|At the Pleasant Haven Hotel there are 36 rooms. The profit earned when a room is sold for a night is $53. If Pleasant Haven overbooks, by selling more reservaitions than they have rooms and they end up having a customer whose reservation cannot be fulfilled, the loss to Pleasant Haven is $30 for that customer. Regardless of the number of rooms booked, the probability of one no show is 60% and the probability of 2 no shows is 20%. There is zero probability of more than 2 no shows. For a night when requests are exceeding the 36 rooms, what is the optimal number of reservations to accept? Assume there is no penalty for a customer who does not show up, i.e., Pleasant Haven does not make $53 on a customer that is a no show. What is the expected net for booking each of the following: (Net means profit minus any overbooking loss.) 36 customers 37 customers 38 customers What is the best number of book?
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