Bullwhip effect leads to higher variability in orders than the customer demand.

Sunny Airlines is contemplating overbooking the economy class in its popular daily flight from Minneapolis to Honolulu, with the objective of extracting the maximum out of otherwise happy vacationers. The number of no-shows in the economy class of this flight over the past few weeks is normally distributed with the mean of 2 and standard deviation 3. All customers pay for the ticket ($500) in advance and no shows are not given a refund. Each customer who is denied boarding is refunded the price of the ticket and is compensated $350 for the trouble. There are 250 seats in the economy class on this route.   What are the costs of over-estimation?

Consider the Ray’s Satellite Emporium example above. The manager wants a 99.5% service level. Calculate the reorder point. (The Normal distribution table is attached below.)  

Consider the Le Meridien example above. What is the cost of over-estimation?

Consider the Sunny Airline example above. What is the critical ratio?

Acknowledgement means that you agree with or support another person. Is this statement true or false?

Which of the following fluids is considered an unbalanced solution?

Positivity is keeping the relationship polite and upbeat (avoiding criticism). 

Confirming communication signals a lack of regard or a disregard.

Kick Flip Inc.