Question
A shuttle service to the Indianapolis airport is trying to decide how to best to manage profit using simulation. Typically, there are about 100 people
A shuttle service to the Indianapolis airport is trying to decide how to best to manage profit using simulation. Typically, there are about 100 people who need rides to the airport each day, throughout the business day. They have a 15 passenger shuttle bus they use for this operation.
If a person wants to make a reservation ahead of time, they can pay a $15 nonrefundable deposit. As of now, the maximum reservations they will accept ahead of time is 15, but they are unsure this is the right number, since there is a probability of no-shows.
Total ticket price for those who reserve ahead of time is $40, and a passenger's credit card is charged the $25 once they arrive, and the trip starts.
There are often walk-up passengers looking to book a ride at the last minute. If there is room, they can ride, but they will need to pay $60 for the shuttle ride.
The number of reservations for each trip is typically between 12 and 19.
The chances a person who made a reservation ahead of time and does not show up is 15%. So, they either show up, or they do not.
If the number of passengers who show up is greater than the Shuttle capacity of 15, the service needs to make special arrangements to get them to the airport, and it costs them $85 per passenger.
There is a 30% chance no one will walk-up for a last minute ride, 40% chance that 1 person will walk-up, 25% chance that 2 people will walk-up, and a 5% chance that 3 people will walk-up.
The fixed cost to run the shuttle to the airport is $115.
Help them figure out how many reservations to accept, by analyzing profits for the following possible reservation limits: 15, 16, 17, 18, 19, 20
PLEASE SOLVE IN EXCEL WITH CALCS
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