The supply chain management program at Cambrian College has capacity for 50 new international students in September of 2021. Cambrian knows from past history that on average 20 students will turn down their acceptance into the program (with a standard deviation of 7 students).

Tuition for the program is $16,000. Cambrian estimates that they will lose about $5,000 per student (this includes their tuition payment) for every student that they go beyond 50 based on additional costs that will be incurred.

a) If Cambrian receives 200 applications from qualified students, how many offers should they send out?

b) Assume that Cambrian also has capacity for 50 supply chain students in January of 2022 but only expects 30 applications. How can Cambrian use yield management to increase their overall revenue?