Luis Daniel Barbier Arizmendi

Luis Medina Quiroz

Luis Zul Espinoza

A01330575
A01331194
A01330555
American Airlines

By the year 1924 in Macon, Georgia; the idea of creating a simple crop spraying
operation called "Huff Daland Dusters" making it the first commercial agricultural
company began to fly. Operations a year later began expanding to Florida,
Mexico, California and northern Arkansas, thus having 18 aircraft of the world's
largest private property. By the year 1927 it expanded to Peru serving as the first
international route on the transfer of mail and passengers on the West Coast of
South America. A year later, C.E. Woolman (founder of "Delta Air Lines")
purchased "Huff Daland D." leading and renaming the movement as "Delta Air
Service".
Over the years, the company was acquiring new territories where traveling and
performing various functions as well as acquiring many new planes and planes for
both personal and private use. The company several times was awarded
numerous accolades and awards for quality and business growth; what motivated
the chairmen and members of the company to become one of the largest airlines
in the world helping more than 160 million people transported to different
destinations.
"Delta Air Lines" made around 2500 domestic flights daily, using 450 aircraft
from 10 different armed.
The main problem is to match flight segments, changes or airline tickets, also
known as "flight legs" with seats corresponding to passengers without leaving
abandoned. Each aircraft must follow a pattern called "program or schedule"
whose role is paramount and essential to the smooth running of an airline.
Similarly it is considered that within the functions of this program is the maximize
revenue with the lowest possible operating cost. The success of the company is
the ability to operate flights on schedule being as efficient as possible.
Historically the benefits / income Delta Air Line had been considered lower costs
so we conclude that the successful future of the company depends on the
program.
The main objective is to have the right aircraft at the time and place indicated
and accurate.
(Check attached documents)
Description quantitative method to solve the problem
Delta Air Lines has chosen to go to the known 2 "Cold Start model" (whose name
came from an old program planning tool used by the airline) consisting of a mixed
linear programming large scale that assigns the various types of flights the
aforementioned "flight legs" to achieve minimize the cost of operation and "spill
costs" of passengers.
The term "Spill Costs" is used to refer to the loss or damage caused by a
transaction or negotiation to a third party who ends up being responsible for the
debt without having to do with the activity.
4 model "Cold Start" is considered a pattern optimization requires a transitional
home, however for an airline the size of Delta, it has not been possible. However,
with the implementation of the (hardware) technology and scheduling algorithms,
solving optimization problems of this magnitude has been possible, Delta Air Lines

being the first to take advantage of the situation. This model works with a
network of space and time you have a timeline for each track in each city.
Above the timeline is constructed circularly and represents a repeating 24-hour
period.
The time lines given by a flight in different cities are connected by "sky arcs"
(arcs across the sky) and those that are given by different flights are not joined
or connected. For each arc is assigned and determines a binary variable that
takes the value "1" if the flight is assigned to a specific segment flight "flight leg"
or otherwise will take the value "0" (zero).
For each "ground arc" (great circle) an integer variable that includes the number
of aircraft of the same type found on earth during that time interval is defined.
Thus, at each node conservation equation arises. These equations make up most
of the limitations of the model.
For each flight each node there is a limitation in which a flight is two nodes.
Solution and benefits.
By having the task of having rigorous restrictions 40,000, 60,000 and 20,000
variables binary variables, giving an overall total of 40,000 integer variables. They
used the OBI (code point inside) to solve the problem as linear programming, try
to solve most or all binary variables using (1 or 0), using the fixed variables to
reduce the size of the problem and to finally resolve the resultant the OSL
program with a mixed integer programming code.
Before solving the OBI use algebra to reduce the size of the problem, hence the
method (lonely-lonely-plus and minus) is made. One equation and one variable is
obtained from this, getting them several natural changes fusion of nodes and can
be solved by means of general matrices, this means, that if we put in (fleet,
cities) have on one side only arrivals on the other outputs, but could be merging
into a single node so that they could collect those entries with those outings.
The second step was to remove the dependent rows by the interior point method.
Finally using the reduction method were 12 000 rows and 30 000 variables.
Coming to the conclusion that if you want to solve the problem of the whole fleet
must use the OBI (the interior point method solved these faster and effective
problem) and if you wanted to cases two or three fleets could use the OSL (for
this type of problem was more reliable and did not take much) to avoid having
infeasibility in the results obtained.
Much time is saved to solve multiple itineraries, it was easier to use 3 Cold Start
model, more realistic solutions, to know that flights should prioritize and what not
and see whether to send a plane with varying capacity. To identify the problems
they were having on routes fleets and 2,500 flights to be allocated, and work the
problem of each specialized form. It allowed for various flight schedules in less
time, using it to analyze these in using the program, since before wasting a lot of
time in the management of another program.
In addition to the above, the Cold Start model had more benefits because it
served as developer routes, fleet planning and transition planning, this thanks to
the successful completion of the initial model. Likewise, had the ability to change
the model of maximizing profits to minimize costs, change it when it was winter
or summer. Especially the most important is here and the size of the fleet,
estimated times of flight, maintenance requiring aircraft noise limitations and the
time would be occupied pilot was counted.

The economic impact they had changes in the itinerary was saving $ $ 55,000 per
day in the first month after the third month $ $ 100 000 per day up to $ 220,000
US dollars per day in the eleventh month, this being possible by constant changes
have been made to model the hand of recommendations and positive attitude to
change the company. Have the advantage of knowing the cost savings and
compensation that will bring each model. Finally, this will make the airline more
competitive rivals before a long and medium term.