Determine the maximum number of reservations


Problem

Dr. Su is on a given Detroit-Seattle fight, there are 120 seats. Suppose the ticket price is $385 on average. You estimate that the average loss from a passenger who will have to be bumped (If the number of passengers exceeds the number of seats) is $875.

Determine the maximum number of reservations that should be accepted if the number of passengers who reserve a seat but do not show up ['no shows'} for departure is normally distributed with a mean of 45 and a standard deviation of 20.

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Supply Chain Management: Determine the maximum number of reservations
Reference No:- TGS03295296

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