Question: List two differences between the Fixed Time Inventory Control and the Fixed Order Quantity Model. [2] KMB Airlines has just started operating out of Tobago

List two differences between the Fixed Time Inventory Control and the Fixed Order Quantity Model. [2] KMB Airlines has just started operating out of Tobago and is considering the Tobago to Spain route. Management at the KMB has determined, using industry statistics that an average of 31 customers (with a standard deviation of 19) cancel their reservations. The revenue per passenger on this flight is TT$190. If the flight is overbooked, the airline plans to give each overbooked customer a free round trip ticket on a future flight to the tune of TT$340. How many seats should the airline overbook each flight to Spain? [5]
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