11.5 - $50 Overbooking loss table approach Reservations...

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Samuel Chu BRONCO ID: 004814758 1 Overbooking Exercise Ex. 11.5 No-shows Percentage 0 30% 1 25% 2 30% 3 15% 4 10% Unit cost of underbooking (Cu) $80 Unit cost of overbooking (Co) $50 Overbooking loss table approach Reservations overbooked No-shows Percentage 0 1 2 3 4 0 30% $0 $50 $100 $150 $200 1 25% $80 $0 $50 $100 $150 2 30% $160 $80 $0 $50 $100 3 15% $240 $160 $80 $0 $50 4 10% $320 $240 $160 $80 $0 Expected loss $136.00 $87.00 $70.50 $93.00 $135.00 Expected gain from overbooking $65.50 Critical fractile approach No shows Percentage Cumu. Perc. 0 30% 0 1 25% 30% 2 30% 55% 3 15% 85% 4 10% 100% Critical fractile computation 0.62 A B C D E F G H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
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Samuel Chu BRONCO ID: 004814758 2 Overbooking Exercise Ex. 11.5 No-shows Percentage 0 30% 1 25% 2 30% 3 15% 4 10% Unit cost of underbooking (Cu) $80 Unit cost of overbooking (Co)
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Unformatted text preview: $50 Overbooking loss table approach Reservations overbooked No-shows Percentage 1 2 3 4 30% $0 $50 $100 $150 $200 1 25% $80 $0 $50 $100 $150 2 30% $160 $80 $0 $50 $100 3 15% $240 $160 $80 $0 $50 4 10% $320 $240 $160 $80 $0 Expected loss $136.00 $87.00 $70.50 $93.00 $135.00 Expected gain from overbo $65.50 Critical fractile approach No shows Percentage Cumu. Perc. 30% 1 25% 30% 2 30% 55% 3 15% 85% 4 10% 100% Critical fractile computation 0.62 A B C D E F G H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38...
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This note was uploaded on 10/19/2011 for the course TOM 453 taught by Professor Kumar during the Spring '11 term at Cal Poly Pomona.

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11.5 - $50 Overbooking loss table approach Reservations...

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