Determine how many rooms to reserve

Assignment Help Operation Management

Reference no: EM132266131

Six months before its annual convention, the American Medical Association must determine how many rooms to reserve. At this time, the AMA can reserve rooms at a cost of $50 per room. All rooms that are reserved must be paid for even if they are not used. The AMA believes the number of doctors attending the convention will be normally distributed with a mean of 5000 and a standard deviation of 1000. If the number of people attending the convention exceeds the number of rooms reserved, extra rooms must be acquired at a cost of $80 per room. Use a simulation model to determine the expected cost of the rooms for the convention for the following reservation levels: 2000, 3000, 4000, 5000, 6000, 7000, and 8000. From the above list of reservation levels, select the optimal number of rooms to reserve. Use a simulation with 2000 replicates and answer the questions below:

a) What is the optimal number of rooms to reserve? (Click to select) 2000 3000 4000 5000 6000 7000 8000

(Round the following answers to two decimals)

b) What is the expected minimum cost? $

b) Construct a 95% confidence interval for the expected cost for the optimal number of rooms to reserve: ($ , $ )

Reference no: EM132266131

Questions Cloud

Data analytics and data mining lead to marketing actions : Develop a competitive profile matrix for Hershey Chocolate company. How does data analytics and data mining lead to marketing actions?

Web page-web server and web client : Explain the difference between a Web page, a Web server, and a Web client.? Provide example for each.

What is the most important factor for company global success : According to Aramex senior executives, what is the most important factor for the company’s global success?

Sustainable development initiatives of shell : Describe one real or potential global impact of the sustainable development initiatives of Shell.

Determine how many rooms to reserve : Six months before its annual convention, the American Medical Association must determine how many rooms to reserve.

What type of appraisal methods : What type of appraisal methods would be most appropriate to use to determine whether someone is performing well in the position.

Execution roles instead of encouraged to have creator roles : Women are typically held under “execution roles” instead of encouraged to have “creator roles” as their men counterparts are.

Support must manage eight different operating systems : Management would like every computer in the company to run the same operating system. As it is now, IT support must manage eight different operating systems.

Planned activities for the party planning process : Create a Gantt chart that reflects your completed and planned activities for the party planning process and put your manager's mind at ease.

User Account

All Pages