|
|
|
Pricing Assignment Case 6 Group 8.docx
Pricing_Assignment_Case_6_Group_8.docx
Showing 1-3 out of 3
Pricing Assignment Case 6 Group 8.docx-DNSC 6214: ...
Pricing_Assignment_Case_6_Group_8.docx-DNSC 6214: Pricing and Revenue Management
Pricing Assignment Case 6 Group 8.d...
Pricing_Assignment_Case_6_Group_8.docx-DNSC 6214: Pricing and Revenue Management
Page 1
DNSC 6214: Pricing and Revenue Management
Spring 2019
CASE 6: BlueSky Airlines
Group 8: Amaan Kidwai, Taoran Mao, Eli Pridonoff, Haolin Yang
(please refer to attached excel for all models)
1.
Since the objective is to maximize revenue over a single bank, we set up a solver model keeping
all constraints in mind.
The objective is to maximize revenue. The constraints include :
-
Decision variables are how many seats can we assign to each flight given the constraints
-
Capacity constraint for each flight sum to 240 or less
-
Constraint of keeping seats allocated less than the demand for each flight
Solver Model :
After running this solver model, we know how many seats to assign to each flight to maximize
revenue. This can be found from the cells highlighted in blue (decision variable). The maximum
revenue comes to
$185,593.
Page 2
2 (a).
In Part 2 (a), Air France offers us $104 per seat for 5 seats on the flight from Miami to Houston. So, we
modify the number of total seats constraint from Miami to Houston by 5 seats, reducing the overall seat
constraint to 235. Addionally, we add the revenue from these 5 seats. We run the solver model
keeping all other constraints the same. Aſter this, we find that the total revenues comes to
$185,613
.
Thus, we should accept this offer as compared to previous scenario, we are able to increase our
revenues by $20.
Solver Model :
Page 3
2 (b).
In part 2(b), Air France makes an additional offers $285 per seat to reserve 10 seats for
passengers traveling from Miami to Chicago. As such, we need to add the additional constraints
of these 10 more seats to our solver model. So, we modify the number of total seats constraint
from Miami to Houston by 5 seats, reducing the overall seat constraint to 235 and likewise,
modify the number of total seats constraints from Houston to Chicago by 10 seats, reducing the
overall seat constraint to 230.
Additionally, we add the revenue from the Air France. After running this model, the total
revenues comes to
$185,543
.
We should not accept this offer as our revenues gets lowered by $70 compared to the previous
offer and $50 compared to the base normal scenario. As such, we should not take this offer.
Solver Model:
Ace your assessments! Get Better Grades
Browse thousands of Study Materials & Solutions from your Favorite Schools
George Washington Univers...
George_Washington_University
School:
Pricing_and_Revenue_Management
Course:
Great resource for chem class. Had all the past labs and assignments
Leland P.
Santa Clara University
Introducing Study Plan
Using AI Tools to Help you understand and remember your course concepts better and faster than any other resource.
Find the best videos to learn every concept in that course from Youtube and Tiktok without searching.
Save All Relavent Videos & Materials and access anytime and anywhere
Prepare Smart and Guarantee better grades
Know more
Students also viewed documents
lab 18.docx
lab_18.docx
Course
Course
3
Module5QuizSTA2023.d...
Module5QuizSTA2023.docx.docx
Course
Course
10
Week 7 Test Math302....
Week_7_Test_Math302.docx.docx
Course
Course
30
Chapter 1 Assigment ...
Chapter_1_Assigment_Questions.docx.docx
Course
Course
5
Week 4 tests.docx.do...
Week_4_tests.docx.docx
Course
Course
23
Week 6 tests.docx.do...
Week_6_tests.docx.docx
Course
Course
106
