Indian Institute of Management Bangalore

Supply Chain Management

2019-20
Mini-Assignment 4
General Instructions:

1. This is an individual assignment, but you are welcome to discuss it with as many students
(past/present/future) as you like. All I want in the end is that the submitted work should
be your own and complete.
2. You must submit your solution on Moodle.
3. The assignment is due Monday, February 3, 2020, 2 pm sharp.

1. (Easy) Solve Exercise 3(a) on PP 504 using Monte Carlo simulation.

OR

2. (Somewhat Challenging) Consider the revenue management problem discussed in the

class with two fare classes. The fares are Rs 3000 and 5000. Assume that the demand for
fare class 1 to be normally distributed with mean 20 and standard deviation 8 and that
the capacity of the plane is 100. Determine the number of seats to be reserved/protected
for fare class 1.