7. The airline offering the flights and fares shown in Table 8.4 decides to raise the San Francisco-to-St. Louis discount fare from $170 to $225. It estimates that discount demand at this new fare will be 20. Given that all other fares and demands remain the same, determine the new optimal set of allocations and total revenue for the network using linear programming. ТлBLE 8.4 Two-flight network management example fares and demands Number ODF Fare Demand San Francisco to Denver full fare $150 30 San Francisco to Denver discount Denver to St. Louis full fare Denver to St. Louis discount San Francisco to St. Louis full fare San Francisco to St. Louis discount 100 60 3 120 20 80 80 250 30 170 40

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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7. The airline offering the flights and fares shown in Table 8.4 decides to raise the San
Francisco–to–St. Louis discount fare from $170 to $225. It estimates that discount demand at
this new fare will be 20. Given that all other fares and demands remain the same, determine the
new optimal set of allocations and total revenue for the network using linear programming.

7. The airline offering the flights and fares shown in Table 8.4 decides to raise the San
Francisco-to-St. Louis discount fare from $170 to $225. It estimates that discount demand at
this new fare will be 20. Given that all other fares and demands remain the same, determine the
new optimal set of allocations and total revenue for the network using linear programming.
ТАBLE 8.4
Two-flight network management example fares and demands
Number
ODF
Fare
Demand
San Francisco to Denver full fare
$150
100
30
San Francisco to Denver discount
Denver to St. Louis full fare
Denver to St. Louis discount
San Francisco to St. Louis full fare
San Francisco to St. Louis discount
60
3
120
20
4
80
80
5
250
30
6.
170
40
Transcribed Image Text:7. The airline offering the flights and fares shown in Table 8.4 decides to raise the San Francisco-to-St. Louis discount fare from $170 to $225. It estimates that discount demand at this new fare will be 20. Given that all other fares and demands remain the same, determine the new optimal set of allocations and total revenue for the network using linear programming. ТАBLE 8.4 Two-flight network management example fares and demands Number ODF Fare Demand San Francisco to Denver full fare $150 100 30 San Francisco to Denver discount Denver to St. Louis full fare Denver to St. Louis discount San Francisco to St. Louis full fare San Francisco to St. Louis discount 60 3 120 20 4 80 80 5 250 30 6. 170 40
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