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Consultant Air focuses business on high-paying McKinsey consultants, but to fill planes, it also carries the general public. It is flying a 100-seat jet from Atlanta to San Francisco and the consultant demand is normally distributed with mean 65 and standard deviation 14. Consultants pay $1,250 per ticket, the general public pays $125. Of course, the general public must book a flight several weeks ahead of time, while the consultant’s book flights at the last minute. Because the price is so cheap, the general public will take all the available seats not reserved for the consultants. How many seats should be opened up for the general public?

Operation Management, Management Studies

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