The goal when making the overbooking decision is to maximize supply chain profits by minimizing the cost of wasted capacity and the cost of capacity shortage.

Question

Quizplus · Accepted Answer

The statement is true. An overbooking decision aims to strike a balance between the costs of wasted capacity due to no-shows and the costs of capacity shortage due to turning away potential customers. The goal is to optimize revenue by maximizing the use of available resources and minimizing the impact of uncertainties in demand.

The Goal When Making the Overbooking Decision Is to Maximize