Adding Uncertainty to a Spreadsheet Model
Turning deterministic model into one that includes uncertainty à Simulation model.
Example: Overbooking a flight
Aim: To find the number of extra reservations to avoid both empty seats and bumped flyers
Approach: Use models that use historical data, mix of refundable and non-refundable tickets, location, different airfare classes and levels. There are 2 uncertainties added to this model:
1 Demand
2 No show-up rate
Example: Overbooking a flight
Aim: To find the number of extra reservations to avoid both empty seats and bumped flyers
Approach: Use models that use historical data, mix of refundable and non-refundable tickets, location, different airfare classes and levels. There are 2 uncertainties added to this model:
1 Demand
2 No show-up rate
