Assume that the timing of discount releases are predetermined: deep-discount fares are available up to 28...

 

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Assume that the timing of discount releases are predetermined: deep-discount fares are available up to 28 days before departure, discount fares are available up to 14 days before departure, and when there are less than 14 days before departure, only full fares are available. Unit revenue and normal demand distribution data for different customer segments are as follows: Full Fare Discount Deep Discount 30.00 90.00 8.00 8.50 $1,200.00 $400.00 Avg. demand: Stdev. Demand: Unit Revenue: Booking capacity is 100. Determine a nested policy using EMSR heuristic and plot the EMSR chart. Specifically state how the company should implement this policy? Seats left: EMSR FF 1 25 33 34 75 94 95 Nested Booking Limit Full fare 175.00 10.00 $125.00 EMSR D EMSR DD Discount Deep Discount Assume that the timing of discount releases are predetermined: deep-discount fares are available up to 28 days before departure, discount fares are available up to 14 days before departure, and when there are less than 14 days before departure, only full fares are available. Unit revenue and normal demand distribution data for different customer segments are as follows: Full Fare Discount Deep Discount 30.00 90.00 8.00 8.50 $1,200.00 $400.00 Avg. demand: Stdev. Demand: Unit Revenue: Booking capacity is 100. Determine a nested policy using EMSR heuristic and plot the EMSR chart. Specifically state how the company should implement this policy? Seats left: EMSR FF 1 25 33 34 75 94 95 Nested Booking Limit Full fare 175.00 10.00 $125.00 EMSR D EMSR DD Discount Deep Discount

Answer rating: 100% (QA)

The provided image shows a table with information regarding the demand revenue and standard deviation for three fare classes Full Fare Discount and Deep Discount of an airline bus company or similar t... View the full answer