application of DSS at American Airline The American Analytical information Management System (AAIMS) is a classic example of a successful decision support systems. It was developed for American Airlines but is used by other airlines, aircraft manufacturers, consultants and associations. AAIMS supports a variety of airline decisions by analysing data collected on airline aircraft utilization, seating capacity and utilization, and traffic statistics. For example, it produces forecasts of airline market share, revenue, and profitability, and helps airline management make decisions on aircraft assignments, route requests, ticket classifications, pricing and so on. Also American Airlines has successfully used yield management DSS. In an airline flight capacity is obviously fixed. Also when the aircraft departs, the unsold seats cannot generate any revenue and thus can be termed as perished. Yield management DSS helps to monitor how seats are reserved and react accordingly. For example, to increase the sales for low demand flight, airlines can offer discounts on the tickets and increase price of flight ticket when there is surplus demand for the flight. The DSS helps managers to decide how many extra seat can be booked and how to set prices for each seat so that a plane is filled up and profits are maximized. Americans Airline yield management systems deal with more than 300 decision variables, and is credited with generating an estimated 10 percent of American airlines revenue in the initial year. DSS has a powerful database that stores data about all of these 300 variables. It also maintain time series data and can evaluate change in the variable on the daily, weekly or monthly basis. Decision support System also help to perform the sensitivity analysis that enable the firms to find out the effect of changing one unit of different input over the output. Airlines can find out how much average variable cost per passenger will be reduced if price of fuel reduce by one unit of currency. Similarly it can also help the airlines to find out how cost will be effected if one food piece is reduced from the menu for the travellers. Using this information American airline was able to save $70,000 in 1987 by eliminating just one olive from each salad served in first class. Question 1. Evaluate the models management component and data management component used in the Airlines DSS. Propose some additional models and data base that can improve the DSS.. Question 2. Illustrate the major functions of DSS that are performed at American Airline. Illustrate with suitable examples from the case study.

application of DSS at American Airline The American Analytical information Management System (AAIMS) is a classic example of a successful decision support systems. It was developed for American Airlines but is used by other airlines, aircraft manufacturers, consultants and associations. AAIMS supports a variety of airline decisions by analysing data collected on airline aircraft utilization, seating capacity and utilization, and traffic statistics. For example, it produces forecasts of airline market share, revenue, and profitability, and helps airline management make decisions on aircraft assignments, route requests, ticket classifications, pricing and so on. Also American Airlines has successfully used yield management DSS. In an airline flight capacity is obviously fixed. Also when the aircraft departs, the unsold seats cannot generate any revenue and thus can be termed as perished. Yield management DSS helps to monitor how seats are reserved and react accordingly. For example, to increase the sales for low demand flight, airlines can offer discounts on the tickets and increase price of flight ticket when there is surplus demand for the flight. The DSS helps managers to decide how many extra seat can be booked and how to set prices for each seat so that a plane is filled up and profits are maximized. Americans Airline yield management systems deal with more than 300 decision variables, and is credited with generating an estimated 10 percent of American airlines revenue in the initial year. DSS has a powerful database that stores data about all of these 300 variables. It also maintain time series data and can evaluate change in the variable on the daily, weekly or monthly basis. Decision support System also help to perform the sensitivity analysis that enable the firms to find out the effect of changing one unit of different input over the output. Airlines can find out how much average variable cost per passenger will be reduced if price of fuel reduce by one unit of currency. Similarly it can also help the airlines to find out how cost will be effected if one food piece is reduced from the menu for the travellers. Using this information American airline was able to save $70,000 in 1987 by eliminating just one olive from each salad served in first class. Question 1. Evaluate the models management component and data management component used in the Airlines DSS. Propose some additional models and data base that can improve the DSS.. Question 2. Illustrate the major functions of DSS that are performed at American Airline. Illustrate with suitable examples from the case study.

Fundamentals of Information Systems

9th Edition

ISBN:9781337097536

Author:Ralph Stair, George Reynolds

Publisher:Ralph Stair, George Reynolds

Chapter1: An Introduction To Information Systems In Organizations

Section: Chapter Questions

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application of DSS at American Airline

The American Analytical information Management System (AAIMS) is a classic example of a successful decision support systems. It was developed for American Airlines but is used by other airlines, aircraft manufacturers, consultants and associations. AAIMS supports a variety of airline decisions by analysing data collected on airline aircraft utilization, seating capacity and utilization, and traffic statistics. For example, it produces forecasts of airline market share, revenue, and profitability, and helps airline management make decisions on aircraft assignments, route requests, ticket classifications, pricing and so on. Also American Airlines has successfully used yield management DSS. In an airline flight capacity is obviously fixed. Also when the aircraft departs, the unsold seats cannot generate any revenue and thus can be termed as perished. Yield management DSS helps to monitor how seats are reserved and react accordingly. For example, to increase the sales for low demand flight, airlines can offer discounts on the tickets and increase price of flight ticket when there is surplus demand for the flight. The DSS helps managers to decide how many extra seat can be booked and how to set prices for each seat so that a plane is filled up and profits are maximized. Americans Airline yield management systems deal with more than 300 decision variables, and is credited with generating an estimated 10 percent of American airlines revenue in the initial year.

DSS has a powerful database that stores data about all of these 300 variables. It also maintain time series data and can evaluate change in the variable on the daily, weekly or monthly basis. Decision support System also help to perform the sensitivity analysis that enable the firms to find out the effect of changing one unit of different input over the output. Airlines can find out how much average variable cost per passenger will be reduced if price of fuel reduce by one unit of currency. Similarly it can also help the airlines to find out how cost will be effected if one food piece is reduced from the menu for the travellers. Using this information American airline was able to save $70,000 in 1987 by eliminating just one olive from each salad served in first class.

Question 1. Evaluate the models management component and data management component used in the Airlines DSS. Propose some additional models and data base that can improve the DSS..

Question 2. Illustrate the major functions of DSS that are performed at American Airline. Illustrate with suitable examples from the case study.

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