DAT 500N – Prescriptive Analytics Fall 2023
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
DAT 500N – Prescriptive Analytics
Fall 2023
Module 2: Linear Optimization Solution Approach
Assignment
This is a group assignment
Instructions
Each team needs to submit the following files through Canvas via a link that will be made available under the Assignment link section (it is sufficient for one member of the team to submit it on behalf of the entire team):
- An electronic copy of your spreadsheet models. The file name should be your group name and assignment name, e.g., Section_21_Team 1 Assignment_2.xlsx.
- An electronic copy of a short typed report. In the report, you should state
A. The mathematical formulation of your optimization model (variables, objective function, constraints), any assumptions you made (Legible, hand-written math formulation is acceptable).
a) Provide clear definition of the decision variables
b) Briefly state the purpose of each constraint
B. Answers to all case questions.
- Grading points will be allocated to the clarity and professional quality of the report.
This is a group deliverable. Work with your designated team members only.
In answering part b) and part c) questions below, if your reasonings involve modifying the (A) Case’s optimization formulation, please:
a. specify in the report, the part(s) of the optimization formulation that you modified.
b. Include the corresponding modified optimization models in separate worksheets in the Excel file, and name the worksheets as Q.b.1, Q.b.2, Q.c.1, Q.c.2, Q.c.3.
BlueSky Airline
Read the attached case “BlueSky Airline: Network Revenue Management (A-C)” and answer the following questions. (An electronic copy of the two tables in the case is available on Canvas).
Do not impose integer constraints in answering any of the following questions.
a) After reading Case A,
1) Formulate (in math) an optimization model for this problem. That is, specify the decision variables, the objective function, and the constraints of the model. (Legible, hand-written math formulation is acceptable.
Mathematical shorthand is acceptable. That is, expressions like are acceptable, and a definition of what
parameter cij represents should be provided.)
2) Construct a spreadsheet model of your formulation and solve it using Excel’s Solver.
3) What is the optimal solution (passenger booking strategy) and corresponding optimal revenue?
b) After reading Case B, answer the following two questions:
1) Air France asks BlueSky to reserve five seats on BlueSky’s flights from Miami to Houston, to be used for
connecting Air France passengers. Air France offers to pay $104 per seat. Should BlueSky accept the offer?
2) In addition to the offer in (1), Air France also offers BlueSky $285 per seat to reserve 10 seats for passengers traveling from Miami to Chicago. Should BlueSky accept this combined offer?
c) After reading case C answer the following questions. Case C is independent of case B:
1) Assume that BlueSky purchases three identical aircrafts. How many coach seats should BlueSky order for the three new aircraft?
2) Now suppose that the three aircraft can be different sizes, between 240 and 380 coach seats.
i. How do you think the three aircrafts should be allocated among the six routes? In other words, should the same aircraft always fly the same routes? Why or why not?
ii. How many coach seats should BlueSky order for each of the three new aircrafts?
3) Because it is cheaper to manufacture three identical planes, Airbus is offering BlueSky a one-time, $5 million discount if it will order three identical aircraft. Should BlueSky take the discount? In deciding this, you may assume that BlueSky operates 3 banks per weekday through Houston, and that the revenues and demands for every bank on every weekday are equal to the demands in Tables 1 and 2 of the (A) Case. Assume 52 weeks a year and 5 weekdays per week.
2023-11-10
Linear Optimization Solution Approach