Protection level for high fare to maximize expected profit

Assignment Help Operation Management
Reference no: EM131031928

Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night while the rooms are priced at $700 per night for the high-paying customers who generally arrive at the last minute. The demand for such high fare customers is distributed normally with mean 60 and standard deviation 50 (this standard deviation is high relative to the mean, but use it anyway). Assume that there is ample demand for regular-fare customers.

What should the protection level for the high fare be to maximize expected profit?

Suppose that Inn at Penn operates with the protection level of 80 rooms for high fare customers. On average, how many high-fare customers are turned away because of lack of rooms?

Suppose again that the Inn at Penn operates with the protection level of 80 rooms for high fare customers. What is the probability that there are at least 5 rooms left unoccupied?

Suppose again that the Inn at Penn operates with the protection level of 80 rooms for high fare customers. What is the probability that there are at least 5 rooms left unoccupied?

Reference no: EM131031928

Questions Cloud

Act upon these assumptions in their behaviors as leaders : Discuss supervisors and leaders you've had who believed in the Theory X or Theory Y? How did they act upon these assumptions in their behaviors as leaders?
What can you learn by engaging in an environmental scan : What can you learn by engaging in an environmental scan that can influence strategic decision making and enterprise performance?
Leadership models-strategies-concepts-techniques-skills : Throughout this course, you have studied leadership models, strategies, concepts, techniques, skills; in fact, the areas studied have been broad and extensive. In a clear, logical, linear manner, discuss which, in your opinion, are the most applicabl..
Compute the reliability of the system : An office security system at Delco, Inc. has two component parts, both of which must work for the system to function. Part 1 has a reliability of 50 percent, and part 2 has a reliability of 50 percent. Compute the reliability of the system
Protection level for high fare to maximize expected profit : Inn at Penn has 200 rooms. For regular-fare customers, rooms are priced at $300 per night while the rooms are priced at $700 per night for the high-paying customers who generally arrive at the last minute. What should the protection level for the hig..
Profit corporations can be a force for good in society : Do you believe that for-profit corporations can be a force for good in society? Explain your answer. Develop your argument to explain why you feel the way you do, including real world examples of corporations that prove your point and examples of tho..
Explain what it means for a student to be successful : For this essay you will explain what it means for a student to be successful in an online classroom and then argue which three characteristics or habits that are most essential for students to achieve success in an online classroom.
Evaluates the supplier of their deep-frozen beef patties : The management of a large fast food chain evaluates the supplier of their deep-frozen beef patties. The supplier delivers frozen beef patties that according to the specifications have to weigh between 94.5 grams and 95.5 grams. All other beef patties..
Four-step assembly operation with quality problems : Consider the following four-step assembly operation with quality problems: The first resource has a processing time of 5 minutes per unit and one employee doing the operation. The second resource has a processing time of 4 minutes per unit. No qualit..

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd