Capacity Management in Easy Jet Airline Free Essay Example, 2500 words

In order to maximize the revenues, the businesses should allocate the capacity in advance so that any opportunity to satisfy the need of high-class customer that might come any time should not go wasted. Curry, (1990) stated Capacities should be divided into different classes like high-class middle class as well as low class. The best way is to keep filling the low class first and store the high as well as a middle class for later usage at higher rates. The paper conducts an experiment to check for profits based on first come first serve as well as capacity allocation methods. After simulation, it was proved that capacity allocation generates considerable higher profits as compared to first come first serve process. Pak, Daker, Kindervater, (2003) state that in industries such as airline industry earlier it was stated that they have fixed business as well as economy class seats but this paper negates the concept of a limited number of seats and introduces the concepts of convertible seats. As per the current demand, the economy class can be converted to business class or business class can be converted to economy class without losing the profits. We will write a custom essay sample on Capacity Management in Easy Jet Airline or any topic specifically for you Only $17.96 $11.86/page