Question: Problem 1 (25 points) source: Revenue management and pricing analytics, by Guillermo Gallego and Huseyin Topaloglu An airline operates two flights, one light from San

Problem 1 (25 points) source: Revenue management and pricing analytics, by Guillermo Gallego and Huseyin Topaloglu An airline operates two flights, one light from San Francisco to Denver and another from Denver to St. Louis. The capacity on the first flight is 100 and the capacity on the other is 120. The ODF's, fares and expected demand are as follows: ODF Fare Demand OUT A CO NO H San Francisco to Denver, full fare 150 30 San Francisco to Denver, discount 100 60 Denver to St. Louis, full fare 120 20 Denver to St. Louis, discount 80 80 San Francisco to St. Louis, full fare 250 30 San Francisco to St. Louis, Discounted 225 20 1. Write down and solve the deterministic linear program corresponding to this network. Report the optimal primal and dual solutions. 2. Consider the network bid-price condition discussed in the Dynamic virtual nesting lecture. Suppose there is a request for a discount seat on the flight from San Francisco to St. Louis. Should we accept this request on the basis of the bid-prices? 3. On the basis of the bid-prices, indicate for each ODF, whether the ODF would be open or closed
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