Based on Hansen and Wendell (1982). During the month of July, Pittsburgh resident Bill Fly must make
Question:
Based on Hansen and Wendell (1982). During the month of July, Pittsburgh resident Bill Fly must make four round-trip flights between Pittsburgh and Chicago. The dates of the trips are shown in the file P05_64.xlsx. Bill must purchase four round-trip tickets. Without a discounted fare, a round-trip ticket between Pittsburgh and Chicago costs $500. If Bill’s stay in a city includes a weekend, he gets a 20% discount on the round-trip fare. If his stay is more than 10 days, he receives a 30% discount, and if his stay in a city is at least 21 days, he receives a 35% discount. However, at most one discount can be applied toward the purchase of any ticket. Determine how to minimize the total cost of purchasing the four round-trip tickets. (It might be beneficial to pair one half of one round-trip ticket number with half of another round-trip ticket.)
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