1. Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 25 customers (with a standard deviation of 15) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $125. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $250. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost.Required:By how many seats should Super Discount overbook the flight? (Round your answer to the nearest whole number.)Number of seats= ?2. Assume that Product Z is made of two units of A and four units of B. A is made of three units of C and four D. D is made of two units of E.Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take one week each; and E takes three weeks.Fifty units are required in Period 10. (Assume that there is currently no inventory on hand of any of these items.)Required :Develop an MRP planning schedule showing gross and net requirements and order release and order receipt dates.
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