4QA3 F12 Week 8 Lecture Notes

What policy do you now obtain 4qa3 f12 a gandomi 28

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Unformatted text preview:   • •  Distribution of no- shows •  $70 to bump a customer Q: number of overbooked rooms •  $100 charge per room per night co = unit cost of overbooking •  $25 maintenance per room per night cu = unit cost of underbooking No- shows Probability F(Q) 0 1 2 3 .15 .25 .30 .30 .15 .40 .70 1.00 ●  ●  cu (c +c ) u o = 75 (75+70) = 0.517 Expected cost of no overbooking: $75[0(0.15) + 1(0.25) + 2(0.30) + 3(0.30)] = $131.25 Expected cost of overbooking by 2 rooms: $70[2(0.15) + 1(0.25)] + $75[1(0.30)] = $61.00 4QA3 F12 A. Gandomi 29 ●  Course textbook o  Chapter 5: 5.1–5.6. ●  Suggested problems o  Chapter 5: 9, 12 13, 15, 16, 20, 22. ●  Further readings o  G. Hadley & T. M. Whitin, Analysis Of Inventory Systems: Chapters 4, 5 and 6. o  Jay Heizer & Barry Render, Operations Management (Prentice Hall): Chapter 12. o  William Stevenson, Operations Management (McGraw- Hill): Chapter 11. ●  Next lecture readings: o  Chapter 7: Ch. 7: 7.1–7.3; 7.5- 7.8, Appendix 7–A. 4QA3 F12 A. Gandomi 30...
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This document was uploaded on 04/01/2014.

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