TUTORIAL $3$

An airline has fare classes from higher to lower as $1,2$ and $3.$ The airline has $200$ seats. The

ticket prices for the classes are $p_1=$$$500,p_2=$$$400,p_3=$$$300.$ The uniformly distributed

demands for these fare classes are denoted by $D_1,D_2$ and $D_3$ :

$D_{1}in[0,40],D_{2}in[0,96],D_{3}in[0,400].$

The airline applies EMSR$-$a heuristic to find the protection levels for classes.

a$)$ Find the protection level $y_2.$

b$)$ What is the booking limit $b_3$ for the third class?

c$)$ Find $y_{1,2}.$

An airline has fare classes from higher to lower as $1,2$ and $3.$ The airline has $200$ seats. The

ticket prices for the classes are $p_1=$$$500,p_2=$$$400,p_3=$$$300.$ The demands for these fare

classes are denoted by $D_1,D_2$ and $D_3.$ The airline considers the cumulative demands:

$D_{1}in[0,100],D_1+D_2=D_{1,2}in[0,200],D_1+D_2+D_3=D_{1,2,3}in[0,400].$

These demands turn out to have uniform distributions with the ranges above. The airline

applies EMSR$-$b heuristic to find the protection level for classes.

a$)$ What are aggregate prices $p_{1,}{p}_{1,2}$ and $p_{1,2,3}?$

b$)$ What is the protection level $y_2$ for classes $\{1,2\}?$

c$)$ What is the protection level $y_1$ for class $\{1\}$ while booking for the second class?