Question $4[35$ pts$]$

Ginger Airlines, a low$-$cost airline company, is set to commence daily flights between Hartford and Atlanta this upcoming summer season. The airline will utilize planes that are equipped with $140$ economy$-$class seats.

Ginger Airlines management decides to offer four different ticket prices: $$300,$ $$400,$ $$500,$ and $$600.$ The $$300$ tickets are available up to $30$ days before departure, the $$400$ tickets are available up to $20$ days before departure, the $$500$ tickets are available up to $10$ days before departure, and the $$600$ tickets are available when there are fewer than $10$ days remaining before departure. The demand distribution data for different customer segments are as follows:

Type

Ticket Price

Demand Distribution

Early Bird

$$300$

Normal$(85,30)$

Deep Discount

$$400$

Normal$(75,25)$

Discount

$$500$

Normal$(45,20)$

Full Fare

$$600$

Uniform$(25,45)($INCLUDE Screenshot of excel sheet in answer$)$ a$)$ Determine a nested booking policy using the EMSR heuristic. $[25$ pts$]$

b$)$ Calculate the revenue when the actual sales are; $[10$ pts$]$

$-70$ tickets until $30$ days before departure,

$-$ then, $25$ tickets until $20$ days before departure,

$-$ then, $10$ tickets until $10$ days before departure,

$-$ then, $35$ tickets until departure

Question $5[15$ pts$]$

a$.$ The Newsvendor model is used to determine the optimal order quantity for perishable or seasonal goods.

TRUE $/$ FALSE

b$.$ The Newsvendor model is applicable only if the demand is normally distributed.

TRUE $/$ FALSE

c$.$ The EMSR $($Expected Marginal Seat Revenue$)$ heuristic is a common method used in overbooking decisions.

TRUE $/$ FALSE

d$.$ The primary goal of overbooking is to ensure customer satisfaction.

TRUE $/$ FALSE

e$.$ Airlines often use overbooking policies to ensure full utilization of seats on a flight.

TRUE $/$ FALSE Question $4[35$ pts$]$

Ginger,Arlines, a low$-$cost airline company, is set to commence daily flights between Hartford and Atlanta this upcoming summer season. The airline will utilize planes that are equipped with $140$ economy$-$class seats.

Ginger Airlines management decides to offer four different ticket prices: $\backslash (\backslash$$ $300,\backslash$$ $400,\backslash$$ $500\backslash ),$ and $\backslash (\backslash$$ $600\backslash ).$ The $\backslash (\backslash$$ $300\backslash )$ tickets are available up to $30$ days before departure, the $\backslash (\backslash$$ $400\backslash )$ tickets are available up to $20$ days before departure, the $\backslash (\backslash$$ $500\backslash )$ tickets are available up to $10$ days before departure, and the $\backslash$$$600$ tickets are available when there are fewerthan $10$ days remaining before departure. The demand distribution data for different customer segments are as follows: