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Overbooking is an optimal strategy only when high fare customers reserve before low fare customers.

(02.08 MC)Which statement best explains the formation of feudalism in Europe?

Consider the small retailer example above. What is the critical ratio? 

Optional: You may attach a picture of your hand-written notes (marked by question number) to be evaluated for partial credits. 

Kick Flip Inc.

Kick Flip Inc. makes skateboard decks for specialty skateboard stores. The production process of the skateboard decks is done in batches and consists of the 3 steps shown in the figure below. The size of each batch is 20 decks and demand is one batch per hour. In the first stage the raw material is sanded. This step takes 3 minutes per deck. After this step, the decks are painted using a Lithography machine. This step takes 2 minutes of production time per deck. The decks are then loaded onto a pallet and dried quickly using an ultraviolet lamp. The lamp can dry up to 20 decks at one time. Drying takes 30 minutes. Each state (i.e., sanding, painting, and drying) has one operator. What is the capacity of the “Painting” stage in batches?

Consider the hospital example above. What will be the resulting change in the reorder point with the decrease in service level?

Consider the outdoor grill example above.  Please briefly explain your answer.

Consider the small retailer example above. How many kWs should they pre-purchase to minimize the total under- and over-estimation costs? (use Z value of -0.67) 

Le Meridien in San Francisco has 160 rooms. The hotel has an ample low fare demand at the room rate of $200 per night, but the demand from the high fare class which pays $450 per night on average, is uncertain. The high fare demand is normally distributed with mean 60 and standard deviation 42. (The Normal distribution table is attached below.)  How many rooms should Le Meridien protect for high fare customers to maximize expected revenue?