Revenue Management
• Capacity allocation
– Booking limit
– Booking limit tradeoff: spoilage and dilution
– Littlewood’s rule
• Sensitivity analysis: full-fare demand variation, full-fare average demand,
full-fare price, discount price, capacity, etc.
• Overbooking
– Deterministic Heuristic
– Other overbooking policies: risk-based, service-level, and hybrid
– Ways to Reduce No-show and Cancellation: nonrefundable deposits, high
prices, and nonrefundable tickets
• Linear programming
– Optimization Model: Decision variables, objective function, and constrains
– In LP, we can always find the optimal solution in a reasonably short time
– Sensitivity analysis and shadow prices
• Network Management
– Managing single resource vs. network
– The linear program formulation for typical network management problem
• The Two-leg Airline Network Management Problem
• Swiftcar Rental Company
Section I (15 points in total):
– 3 multiple choice questions (5 points each)
• Section 2 (40 points in total):
– Capacity allocation, 2 calculation questions, 20 points in total
– Network management, 2 calculation questions, 20 points in total
• Section 3 (45 points in total)
– Excel Solver optimization for network management
– Use Excel Solver to formulate the network management problem and deliver
the solution
– The formulation and its solution must be submitted online
Last Completed Projects
| topic title | academic level | Writer | delivered |
|---|