Consider a network revenue management model with (a) Solve the bid-price linear program (5.7) and the ADP linear approximation (5.4) with 100 random sample paths to obtain lower bound estimates on...

Consider a network revenue management model with

(a) Solve the bid-price linear program (5.7) and the ADP linear approximation (5.4) with 100 random sample paths to obtain lower bound estimates on z∗ .

(b) Construct upper bounds using (i) Theorem 3 for the bid-price linear program; (ii) the modified booking limit upper bound.

(c) Construct a simulation to test the use of: (i) re-solving the bid-price linear program in each period; (ii) re-solving the ADP linear approximation (5.4); (iii) using the probability interpretation in the re-solving step as in Jasin and Kumar [2010].