|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 uphaving 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 probabilityof 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 ona 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 customers37 customers38 customersWhat is the best number of book?

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Answered: |At the Pleasant Haven Hotel there are…

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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eBook Problem 15-27 (Algorithmic) Gubser Welding, Inc., operates a welding service for construction and automotive repair jobs. Assume that the arrival of jobs at the company's office can be described by a Poisson probability distribution with an arrival rate of four jobs per 8-hour day. The time required to complete the jobs follows a normal probability distribution, with a mean time of 1.4 hours and a standard deviation of 1 hour. Answer the following questions, assuming that Gubser uses one welder to complete all jobs: a. What is the mean arrival rate in jobs per hour? If required, round your answer to two decimal places. per hour b. What is the mean service rate in jobs per hour? If required, round your answer to four decimal places. per hour c. What is the average number of jobs waiting for service? If required, round your answer to three decimal places.
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