An airline serving Denver's International Airport and Steamboat Springs, Colorado, is considering overbooking its flights to avoid flying with empty seats. For example, the ticket agent is thinking of taking seven reservations for an airplane that has only six seats. During the past month, the no-show experience has been:
|
No-shows
|
0
|
1
|
2
|
3
|
4
|
|
Percentage
|
30
|
25
|
20
|
15
|
10
|
The operating costs associated with each flight are pilot, $150; first officer, $100; fuel, $30; and landing fee, $20.
What would be your recommendation for overbooking if a one-way ticket sells for $80 and the cost of not honoring a reservation is a free lift ticket worth $50 plus a seat on the next flight?
Develop a table similar to Table 11-7 and determine the best overbooking level based on expected cost (loss) approach. If you used Excel, copy and paste your spreadsheet here.
The sheriff has been asked by the county commissioners to increase weekend patrols in the lake region during the summer months. The sheriff has proposed the following weekly schedule, shifting deputies from weekday assignments to weekends:
|
Day
|
Sun.
|
Mon.
|
Tues.
|
Wed.
|
Thurs.
|
Fri.
|
Sat.
|
|
Assignments
|
6
|
4
|
4
|
4
|
5
|
5
|
6
|
Develop a weekly work shift schedule of duty tours, providing 2 consecutive days off per week for each officer. Note: Use the heuristic approach posted on the Blackboard. If you use Excel, copy and paste the spreadsheet here.