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Airline Overbooking Model

Inputs
Number of seats
Price per seat
Cost for bumping
Demand distribution (normal, but integerl)
Mean
Standard deviation

150
$
$

300
600

175
15

Probability of a no-show
Refund to no-show

15%
50%

Decision variable
Maximum booking level

190

100 $ 3.600 $ 1.800 $ 47.700 .Random Inputs and Important Outputs Demand Seats booked No-shows Shows Flies Bumped Booking revenue No-show refund Cost for bumping Net revenue 177 177 24 153 150 3 $ 53.