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A product’s demand in each period follows a normal distribution with mean of 60 and standard deviation of 10. The order-up-to level is 200 and the lead time is 2 periods. What is its stockout probability?

Zowee Airline plans to fly several daily flights from Madison to Los Angeles.  Based on historical data, the flight on Wednesday evening before Thanksgiving is always sold out.  However, there are usually no-shows so the airline wants to increase revenue by overbooking.  They estimate that the no-shows are normally distributed with a mean of 8 and a standard deviation of 2.83.  The airline feels that if they “get caught” overbooking, then the cost for bumping customers will be about ten times more than the low fare ticket price.  How many seats should the airline overbook?

Formulas Z = (Q – Mean) / STDEV C.R = Cu / (Cu + Co) I(Z) =NORM.DIST(Z,0,1,0)+Z*NORM.S.DIST(Z,1) Exponential Smoothing: y ̂(t+1) = (alpha × actual data + (1-alpha) × previous forecast

When setting the protection limit for high paying customers, the critical ratio implies the following: (choose the best answer)

Zowee Airline plans to fly several daily flights from Madison to Appleton.  Based on historical data, the flight on Wednesday evening before Thanksgiving is always sold out.  However, there are usually no-shows so the airline wants to increase revenue by overbooking.  They estimate that the no-shows are normally distributed with a mean of 8 and a standard deviation of 2.83.  The airline feels that if they “get caught” overbooking, then the cost will be about ten times more than the ticket price.  Since Appleton is a family-oriented town, the airline management is dreading bad publicity around Thanksgiving, so it decides that it does not want to bump passengers more than 4% of the time.  What is the maximum number of seats the airline should overbook?

When airlines deny boarding to customers, it is usually a result of ………

Assuming if Fred and Barney were to work together as one company, what order quantity would maximize the expected supply chain profit?

In the Newsvendor model, a critical ratio of 0.7 means there is a 70% chance that demand is less than or equal to the optimal order quantity.

Demand is modeled with a normal distribution that has a mean of 300 and a standard deviation of 50. What is the probability that demand is between 200 and 400?

While discussing the topic of Forecasting, Professor Mughal claimed, (albeit falsely) that he can predict the future events by reading the palms.