Bluesky

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Additional information, including supplemental material and rights and permission policies, is available at http://ite.pubs.informs.org.

Vol. 9, No. 3, May 2009, pp. 148–157 issn 1532-0545 09 0903 0148

informs

®

doi 10.1287/ited.1090.0033tn
© 2009 INFORMS

I N F O R M S
Transactions on Education

Teaching Notes

BlueSky Airlines: Single-Leg Revenue
Management (A–C)
Robert A. Shumsky

Tuck School of Business, Dartmouth College, Hanover, New Hampshire 03755, robert.shumsky@dartmouth.edu D

istribution: To maintain the integrity and usefulness of cases published in ITE, distribution of this teaching note to any other party is prohibited. Please refer interested instructors to ITE for access to the teaching notes. Introduction

students have been introduced to revenue management. I have previously assigned the case in advance of class and then spent from 30 minutes to one hour of class time discussing the students’ solutions.
When using all three cases, I have assigned the (A) and (B) Cases in advance of class and asked the students to submit spreadsheets with solutions to both cases before class begins. During the 90-minute class we would devote approximately 40 minutes to discussing the (A) Case, 20 minutes on the (B) Case, and the remaining 30 minutes working through the (C)
Case together in class (students are told in advance to bring their laptops to class). I usually ask students to pair up, and I try to match a student with relatively little simulation experience with one who is more comfortable with the material. I tell pairs that the weaker student should be the one with hands on the keyboard.
Finally, a note on timing: I have used this full plan for Cases (A)–(C) only once, in an elective on service operations management. The schedule was a bit tight and we had to rush the discussion of the spiral-down effect in the (C) Case. In the future I may spread the material over more than one class period.

These cases focus on the revenue management of a
single



References: Bradley, S. P., A. C. Hax, T. L. Magnanti. 1977. Applied Mathematical Programming. Addison-Wesley, Reading, MA. Hillier, F. S., G. J. Lieberman. 2004. Introduction to Operations Research, 8th ed. McGraw Hill, Boston. Talluri, K., G. van Ryzin. 2004. The Theory and Practice of Revenue Management. Kluwer, Boston. Tuck School of Business at Dartmouth. 2009. Sensitivity toolkit. http://mba.tuck.dartmouth.edu/toolkit/download.html. Last accessed on March 26, 2009.

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