Question: 1 . In the multiple - fare class capacity allocation problem, companies use heuristics to estimate the booking limits for the different classes. A well
In the multiplefare class capacity allocation problem, companies use heuristics to estimate the booking limits for the different classes. A wellknown heuristic named Expected Marginal Seat Revenueb EMSRb works as follows:
a Finds the protection levels for a class relative to each of the higher classes using Littlewood's rule.
b Finds the protection levels for a class relative to each of the higher classes using Littlewood's rule and sums them up to create the protection level for the class.
c It creates an artificial class with demand equal to the sum of the demands for all the future periods and a fare equal to the expected fare from future bookings. It then uses Littlewoods rule to calculate the protection level of the current class j with respect to the artificial class.
Finds the booking limits for a class relative to each of the higher classes using Littlewood's rule and sums them up to create the protection level for the class
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