Consider an airline single-leg capacity allocation problem with 4 classes. The demand is assumed to be normally distributed with the following demand data:

a. Calculate the protection levels using EMSR-a

b. Calculate the protection levels using EMSR-b

c. The optimal protection levels for this problem is known to be ????ଵ = 16.7, ????ଶ = 42.5, ????ଷ = 72.3. Compare the expected revenue from using the optimal protection level, the EMSR-a levels, and the EMSR-b levels. Assume the total capacity is C=90.

Transcribed Image Text:

j 1 2 3 4 1050 567 534 520 Pj 17.3 45.1 39.6 34.0 Mj 5.8 15.0 13.2 11.3 Oj j 1 2 3 4 1050 567 534 520 Pj 17.3 45.1 39.6 34.0 Mj 5.8 15.0 13.2 11.3 Oj

Answer rating: 100% (QA)

a Calculate the protection levels using EMSRa ANSWER EMSRa protection levels 1 1050 173 58 10265 2 567 451 150 5071 3 534 396 132 4812 4 520 340 113 4... View the full answer