15.071 | Spring 2017 | Graduate

# The Analytics Edge

8.2 Airline Revenue Management: An Introduction to Linear Optimization

## 8.2 Airline Revenue Management: An Introduction to Linear Optimization

### Quick Question

In the previous video, we set up an optimization problem with 2 different types of tickets.

How many decision variables would we have if there were 4 different types of tickets?

Exercise 1

Numerical Response

How many constraints would we have if there were 4 different types of tickets (with two different types of tickets, our model has 5 constraints: one capacity constraint, two demand constraints, and two non-negativity constraints)?

Exercise 2

Numerical Response

Explanation

If our model had 4 different types of tickets, we would have four decision variables, one for each type of ticket. We would have 9 constraints, since we would need one capacity constraint, 4 demand constraints, and 4 non-negativity constraints.

## Course Info

Spring 2017
##### Learning Resource Types
Lecture Videos
Lecture Notes
Problem Sets with Solutions