The Simplex Method is an algorithm devised to solve the linear programming problems. The simplex method is very efficient in practice, generally taking 2m to 3m iterations at most (where m is the number of equality constraints), and converging in expected polynomial time for certain distributions of random inputs. By this project, the team plans on studying the application of the algorithm in the area of linear optimization along with practically demonstrating it’s use in the Airline Revenue Management System.
RM systems are used to determine the optimal price of selling a seat or the number of seats to be sold at a specific price at any given point in time. The information required to be able to make this decision depends on a number of factors, not all of which have traditionally been available. The team plans to develop a rather sophisticated system to implement an automated platform that predicts the number of seats to be sold for a specific discounted and regular fare price in order to ensure maximum profit for the airline.