IT - Management
IT - Management
IT - Management
Type of DSS
Data-oriented DSS
Provide tools for the manipulation and analysis of the data
Example: Statistical tests
Example of DSS
American Airlines Maximize the revenue or yield from each flight
Example of DSS
To solve this issue American airlines
nonlinear, stochastic, mixed integer mathematical models 250 million decision variables for entire route system
Instead of developing a single model OR group developed a series of models to attack three more manageable sub problems
Example of DSS
First of the models controls OVERBOOKING Second model to help how many DISCOUNT seats to offer on a flight Third model TRAFFIC managementcontrol reservations by passengers origin and destination to maximize revenue.
Results
Overbooking DSS has been in use since 1990 and estimated to increase revenue by more than $200 million each Discount seat allocation model is estimated to have obtained from 30-49% of revenue A net profit of $ 892 million in 3 years period