Final answer:
The tactic of overbooking is suitable in situations where customers can cancel orders and asset value drops after a deadline, but it can lead to customer dissatisfaction.
Step-by-step explanation:
The tactic of overbooking or overselling is suitable in situations where customers are able to cancel orders and the value of the asset drops significantly after a deadline. This tactic is commonly used in industries such as airlines and hotels. By overbooking, businesses ensure that even if some customers cancel or do not show up, they still have a full house and maximize their revenue.
For example, airlines overbook flights because they know that some passengers may cancel their reservations or not show up. By overbooking, the airline can fill up the empty seats with standby passengers, thus minimizing revenue loss.
However, overbooking can also lead to customer dissatisfaction if there are more customers than available assets. In such cases, the business may have to provide compensation or alternative arrangements to accommodate the excess customers.