Multiple Choice
Scenario 16.4 - Santorini Donkeys
Sturdy little donkeys are used to carry corpulent tourists up the Santorini caldera to the town of Fira.One cruise line that routinely docks at the port is considering a plan to maintain their own donkey herd,which will cost them $15,000 per thousand tourists.The number of tourists needing this service is normally distributed,with a mean of 10,000 and a standard deviation of 3,000.Usually,this is enough donkey capacity,but occasionally the cruise line rotates a bigger ship through this route and the excursion director must purchase donkey capacity on the spot market,where is costs $20 per tourist.
-How many donkeys should the cruise line have in its herd?
A) 8,111
B) 7,977
C) 7,842
D) 7,707
Correct Answer:

Verified
Correct Answer:
Verified
Q2: The goal of optimization is to use
Q3: The cost of a capacity shortage is
Q4: In order for a freight railroad to
Q5: It is important for the firm to
Q6: The basic trade-off to consider during overbooking
Q7: The goal of optimization in revenue management
Q8: Explain why forecasting is important to revenue
Q9: The goal when making the overbooking decision
Q10: The forecasting function is<br>A)the foundation of any
Q11: A manufacturer of industrial sales has production