Analyze the simulation model, with 50 trials, for Koehler Vision Associates (KVA) with the following assumptions.
statistics
Description
Analyze
the simulation model, with 50 trials, for Koehler Vision
Associates (KVA) with the following assumptions. Assume that the no show
rate is uniform, between 10% and 20% of prospective patients fail
to show up or cancel their exam at the last minute. A $250 charge is applied as
a deposit for the actual procedure. Patients that do not show up are refunded
the charged fee less a $25 processing fee. KVA can handle 125 patients per week
and is considering overbooking its appointments to reduce the lost revenue
associated with cancellations. However, any patient that is overbooked may
spread unfavorable comments about the company; thus, the overbooking cost is
estimated to be $125. Determine the averages for the net profit (revenue
less overbooking costs) and number overbooked for taking appointments
between 130 and 150 patients in increments of 2. What would
you recommend?
