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3
Inventory for Valuable Customers
g
.
.

Types of Customers using different fare classes.

Two -

Business Customers more but book late

pay
-

-Leisure Customers less but book ·

pay early
Result : save tickets for business customers.

Overselling Overbooking Level = number ofseats to overbook .

1) To make an idea , product seem better than it is

2)
Selling more than is available
3
. Plane
.
g Capacity = 123

-
Sell less than 123 >
- seats definitely empty = revenue t

-
Sell exactly 123-seats
might be empty (no-shows)
-
Sell more than
I23 IS
might be able to
fill the plane Is max. revenue

How should take care of bumped ?

companies passengers
·
Provide accommodation
· Provide meal rouchers
·
Give cash or travel rouchers
·
Alternative
flights or refund

Lecture 10

Sourcing and Supply Management

Types of Sourcing :

T
-nsourcing performing activity
*
: a business inhouse .

Ou
tsourcing rely : on an external supplier
.
·

Offs
horing moving work from
country to another e
. Apple Foxconn
g Factory
· : one .
-

Outsourcing :

ofscale Risky to depend for key prode

Can be cheaper economies
-

. a

-
Reduction in control
to scale Reduction
+
Flexibity capacity up or down
. -
in
ability to differentiate
.