See how mathematical optimization can make your revenues and profits soar in this example, where we’ll show you how an airline can use the AI technology to devise an optimal seat pricing strategy. You’ll learn how to formulate this Yield Management Problem as a three-period stochastic programming problem using the Gurobi Python API and solve it 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.