Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CU Airlines operates two flights, one from New York to Phoenix and another one from Phoenix to San Francisco. It sells a full fare and

CU Airlines operates two flights, one from New York to Phoenix and another one from Phoenix to San Francisco. It sells a full fare and a discount fare for each leg, and a single fare for the combined leg from New York to San Francisco. The airline has assigned a 120-seat aircraft for the first flight and a 100-seat aircraft for the second flight. The demand for each fare is assumed to be random and normally distributed. The fares and demands for these flights are shown in the following table:

Number ODF Fare Demand mean Demand std. dev. 1NYC-PHX full fare $300 30 62 $200 70 20 3NYC-PHX discount fare PHX-SFO full

Formulate the problem as a deterministic network linear program using the means. What is the optimal allocation and revenue?

Number ODF 1 2 3 4 5 NYC-PHX full fare NYC-PHX discount fare PHX-SFO full fare PHX-SFO discount fare NYC-SFO fare Fare $300 $200 $250 $150 $300 Demand mean 30 70 20 50 40 Demand std. dev. 6 20 5 15 15

Step by Step Solution

3.32 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

Formula Formula Formula Formula 1 2 3 4 5 6 7 8 9 10 A B Leg 1 1 Phoenix ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions