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A hotel near the university always fills up on the evening before basketball games. History has shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of 14 and standard deviation of 8. The average room rate is $81. When the hotel is overbooked, the policy is to find a room in a nearby hotel and to pay for the room for the customer. This usually costs the hotel $201 (net of the room rate) since rooms booked on such late notice are expensive. How many rooms should the hotel overbook? Round your answer to the nearest integer.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92591811

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