Escolar Documentos
Profissional Documentos
Cultura Documentos
Airlines
Inc.
Group 1
Anagha Jadhav
Nikhil Dalal
Parina Kolhe
Saswata Banerjee
Sabyasachi Mukerji
Ankit Tiwari
M005-15
M018-15
M038-15
M048-15
M062-15
M075-15
8. Example: An aircraft has 100 seats and there are two types of fares:
full ($499) and discount ($99). While there is unlimited demand for
the discount fares, demand for full fares is estimated to be
anywhere between 10 and 30. How many seats should be protected
for full-fare passengers?
Answer:
We will be able to sell the full ticket fare only when the demand for it is more
than the protected limit for it.
Let x = unsold tickets to be used for full fare ticket
Cu= 499-99 = 400
Co= 99
Here we find that the service level or probability is:
Cu/(Cu+Co) = 400/(400+99) =0.8016
When 99 499* {1- P(D<=x), we should hold x seats for full fare
ticket
When x = 24, P[D 23]= 0.787: hold
When x= 25, P[D 24]= 0.843: sell
The aircraft should hold 24 seats for full-fare passengers.