Reconsider the Blue Skies Airlines example presented in Sec. 18.8. Regarding the flight under consideration, recent experience indicates that the demand for the very low discount fare of $200 is so high that it may be possible to considerably increase this fare and still usually fill up the airplane with both leisure and business travelers. Therefore, management wants to learn how the optimal number of reservation slots to reserve for class 1 customers would change if this fare were to be increased. Make this calculation for new fares of $300, $400, $500, and $600.
Answer to relevant QuestionsThe most popular cruise offered by Luxury Cruises is a three-week cruise in the Mediterranean each July with daily ports of call at interesting tourist destinations. The ship has 1,000 cabins, so it is a challenge to fill ...Consider the overbooking model presented in Sec. 18.8. For a specific application, suppose that the parameters of the model are p = 0.5, r = $1,000, s = $5,000, and L = 3. Use the binomial distribution directly (not the ...Jennifer’s Donut House serves a large variety of doughnuts, one of which is a blueberry-filled, chocolate-covered, supersized doughnut supreme with sprinkles. This is an extra large doughnut that is meant to be shared by a ...Using the approximation for finding the optimal policy for the stochastic single-period model with a setup cost when demand has an exponential distribution, find this policy when and the costs are Holding cost = 40 cents per ...Consider an infinite-period inventory problem involving a single product where, at the beginning of each period, a decision must be made about how many items to produce during that period. The setup cost is $10, and the unit ...
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