# operations-management Essay The Titan hotel routinely experiences no

The Titan hotel routinely experiences no-shows (people making reservations and notshowing up) during the peak season when the hotel is always full. No-shows followsthe probability distribution given in the table below:No-shows (x) Probability0 0.11 0.132 0.313 0.164 0.215 0.09In order to lessen the number of vacant rooms, the hotel uses an overbooking policythrough which it accepts three more reservations than the number of roomsavailable. On a day when the hotel experiences fewer than three no-shows, there arenot enough rooms for those who have reservations. The hotels policy is to sendthese guests to a closely located competing hotel, at a cost, supported by the Titanhotel, of \$125 per person. If the number of no-shows is more than three, the hotelhas vacant rooms, resulting in an opportunity cost of \$50 per person.a. Simulate 3000 days of operation to calculate the hotels average daily costdue to overbooking and opportunity costs.b. Determine the optimal number (0, 1, 2, 3, 4, 5, 6) of rooms that the Titanhotel should overbook in order to minimize average daily costs.

# operations-management Essay The Titan hotel routinely experiences no

The Titan hotel routinely experiences no-shows (people making reservations and notshowing up) during the peak season when the hotel is always full. No-shows followsthe probability distribution given in the table below:No-shows (x) Probability0 0.11 0.132 0.313 0.164 0.215 0.09In order to lessen the number of vacant rooms, the hotel uses an overbooking policythrough which it accepts three more reservations than the number of roomsavailable. On a day when the hotel experiences fewer than three no-shows, there arenot enough rooms for those who have reservations. The hotels policy is to sendthese guests to a closely located competing hotel, at a cost, supported by the Titanhotel, of \$125 per person. If the number of no-shows is more than three, the hotelhas vacant rooms, resulting in an opportunity cost of \$50 per person.a. Simulate 3000 days of operation to calculate the hotels average daily costdue to overbooking and opportunity costs.b. Determine the optimal number (0, 1, 2, 3, 4, 5, 6) of rooms that the Titanhotel should overbook in order to minimize average daily costs.

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