Yield Management

This model is an example of a Yield Management problem. Yield management is a variable pricing strategy, based on understanding, anticipating, and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats). This Yield Management Problem is formulated as a three-period stochastic programming problem using the Gurobi Python API and solved with the Gurobi Optimizer.

This model is example 24 from the fifth edition of Model Building in Mathematical Programming by H. Paul Williams on pages 282-284 and 337-340.

This modeling example is at the advanced level, where we assume that you know Python and the Gurobi Python API and that you have advanced knowledge of building mathematical optimization models. Typically, the objective function and/or constraints of these examples are complex or require advanced features of the Gurobi Python API.

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For details on licensing or on running the notebooks, see the overview on Modeling Examples