Amy and Matt are getting married in their hometown the same weekend as the Battle of Bristol,

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Amy and Matt are getting married in their hometown the same weekend as the Battle of Bristol, the largest college football game ever played. That’s good news for the couple, but bad news for the Inn where the wedding is scheduled. A block of 50 of the hotel’s 100 rooms have been reserved for wedding guests on Saturday night at a reduced wedding package rate of $95 a room. If those rooms had been available for football fans, both Friday and Saturday nights would have been booked for $300 a night. The Inn’s manager is feeling the heat to overbook the hotel, given that wedding guests are known to cancel at the last minute, and football fans book rooms  well in advance. Bianca, the event coordinator, has provided data on the number of no-shows or canceled rooms from past weddings at the Inn. She cautions that while overbooking is a sound business practice and would yield lucrative income for that particular weekend, if word gets around that blocked rooms are not really blocked, the future of their wedding business would be in jeopardy. Use the data below to recommend an overbooking strategy for the Inn. Since fans would be looking for a 2-night package for the game, assume that the unavailability of a Saturday night room would result in lost revenue from an unsold Friday night room as well. Further assume that guests who are bumped will be moved to an expensive resort nearby for $450/night, paid for by the Inn.
NO-SHOWS                         FREQUENCY
0 ................................................    1
1 ................................................     2
2 ................................................    3
3 ................................................    4

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Operations and Supply Chain Management

ISBN: 978-1119444404

9th edition

Authors: Roberta S. Russell, Bernard W. Taylor

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