Question: 1 . In the multiple - fare class capacity allocation problem, companies use heuristics to estimate the booking limits for the different classes. A well

1. In the multiple-fare class capacity allocation problem, companies use heuristics to estimate the booking limits for the different classes. A well-known heuristic named Expected Marginal Seat Revenue-b (EMSR-b) 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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