[Appendix; Advanced Material] If an airline company decides to buy smaller jets with fewer seats,then the problem of:
A) spillage and spoilage both increase.
B) spillage decreases,but spoilage increases.
C) spillage and spoilage both decrease.
D) spoilage decreases,but spillage increases.

Question

Quizplus · Accepted Answer

Spoilage refers to the loss when a service capacity goes unused (e.g., empty seats on a flight), and spillage refers to the lost opportunity when demand exceeds capacity. By using smaller jets, the airline reduces the likelihood of empty seats (reducing spoilage), but increases the chance that not all demand can be accommodated (increasing spillage).

[Appendix; Advanced Material] If an Airline Company Decides to Buy