MATHEMATICAL MODELING IN NUMERICAL SIMULATION ON YIELD MANAGEMENT AIRFARE SALE By.

Ima Dwitawati Drive a business with varying production price simultaneously is often done by the airline, such as providing different ticket prices in the same flight. It is often said the yield management on the airline. The basic of management is how offering products and selection appropriate price in the tickets sale, so it will obtain optimum profit for the airlines. One of the airlines in air transportation service is Garuda Indonesia. Some offers have been made Garuda was not enough to win the market to attract customers because there are a lot of airlines in Indonesia. Therefore we need new penetration to make Garuda as a market leader in the domestic market, and it is ready to compete in international markets with the end goal is the optimal profit. So this thesis made is to introduce management to maximize gains for the Garuda flight. Gains management here are presented in the form of gain management model by doubled the price, and the changing price is unlimited. In this research will be determined the optimal time for ticket sale and it is carried out numerically.

Yield Management Principles of Yield Management (AM) inception in 1976 as a result of the deregulation of the airline industry in the United States. Since that time extensive use and modification extends to all corners in the world of commercial aviation. The aim of the airline at maximizing the number of passengers carried to achieve maximum gains before the introduction of yield management. The appropriate definition of Yield Management (AM) proposed by Kimes (1994) which is said: Yield management is a method to maximize the yield of passengers by selling the right inventory to the right customer, at the right time and at the right price. Gallego and Van Ryzin (1994) is present yield management model with multiplication and unlimited price changes. They get the right solution from the research when an exponential demand function. Littlewood (1972) in his study doing economic approaches and propose a conceptual model of marginal gains. The model is divided into two parts, such that:

 The first part connect with cargo forecasts set out every day and sectors based on knowledge of future bookings. The second part is connect with the acceptance or yield of control by compliance demands place orders with the price that paid by customers. Feng and Xiao (1998) presents an yield management with the treatment double price and the unlimited exchange price. The main results of this research are: An exact solution of the continuous time models. Calculation feasible solution. At each level there is a row of initial inventory period turnover threshold which leads price, but it shifted to the zero starting point as the initial inventory increases.

Poisson Process
Poisson Process is special even of counting process. For example like picture below :

Picture: x shows the even happened If is the average of the even appear in very short interval , then counting process is a Poisson Process if: and

show the frequency in

1.

as an initial condition

2. Have an independent increment, have an independent time (for every k then

, only depend of 3. 4. If all of that assumsion are satisfied then system of differential equations:

), and have the stationary increment.

will satisfied the

Optimal Condition Suppose absolute continue function and bounded to [0, T], for every n. Define a

generator which is uninvited Gk which is following Poisson process, that is:

If Vk(t,n) in the domain Gk then the using of generator Gk in Vk(t,n)influences the reduces of Vk(t,n)value which is caused by the injury of two part, that are:
1. The injury caused by the expired sale time which is stated by 2. The

injury

caused

by

the

reducing

of

the

supply,

stated

by

Theorem 2.4.1 Suppose Vk(t,n) function for every n is continues absolutely, bounded, and differentiated part by part in partial differential. If Vk(t,n) satisfied : 1. 2.
3.

by the right side is continues

effected :

4.

effected :

Then Vk(t,n) identical by The Monotonous

where

is a premium function

When the price is offered to get the optimal result, manager will have some decision continually to keep the price, or finished the decision quickly. The end of that decision must be constant with the business rule. This consistent determined by the monotonous characteristic.

Definition 2.5.1 The function of sequence from boundary point subinterval [0, and (

said to be monotone if there is any differential which divides sale period be [0,T] be two such that every is positive, said , and the

to be first monotone type for every second monotone type if positive at [0, .

positive at (

Definition 2.5.2 The act of k and k+1 close each other, said to be monotonous if both of them are one type. A wisdom called as monotone if every act couple is closure follows the monotonous rule Lemma 2.5.1 If is the first type monotone Lemma 2.5.2 suppose i) ii) then is an increase function in t and n at both of them are reduce in t and n is the increase function in t and n when when . Then every action follows ; is an increase function at t and n when then k

Proposition 2.5.1 Assumed that the term of monotonous if

The Example in Numerical Method and Solution Flight company offers some seats on one aeroplane for domestic route flight. Its sold during 2 months before take off. The company plan to use three different price that based on unsold ticket and remaining time. There are super discount price, discount price, and regular price from 100 seats that be offered. Price for super discount is $100, discount is $150, and regular is $200. Demand from each successive price level is estimated at 80, 40, and 20 costumers. In every level demanding price follows a Poisson process. Find the series of optimum thresholds time ( pricing policy guide formaximize revenue from the sale amount. and ) as optimum

Solution : This case is valorization, where, K = 3 is the amount of price level that be offered, consist of (k1, k2, k3). T = 2 is offering period before departure M = 100 consist of (n1, n2, ... , n100). Its the amount of seats that be offered by the company. (p1, p2, p3) = ($100, $150, $200) is the price that be offered in each level. (1, 2, 3) = (80, 40, 20) is the average of demanding estimation in each price level. We can determine thresholds time price ( and ) by use equation that we used , optimum time for first action (k =

before. First step, we will determine all value of 1). if t > if t< where,

Upper bound of the integration is T = 2 and lower bound of integration t is the value of infimum 0 t T or aproximation value of T is t = 1. 999069875. t is available for all Then, .

Based on theorem 2.4.1, , so we need a imaginary function

and below,

To get the value of

Table 4.2.1 the value of

for k = 1

Table 4.2.2 the value of

from n = 1 until n = 80

On the table, shown that time sequence for optimum tome for k = 1 is for super discount ticket. For n = 80, value of third action (sell regular ticket). <0, so at that time, the company must choose