Question 2 "In air cargo revenue management, for every flight we operate, we first must forecast the capacity so we can understand how much space we can sell. Unlike on the passenger side where the number of seats is rather standard, the cargo capacity will vary based on the route, the aircraft, the number of passengers, the number of bags passengers are carrying and other metrics." Karri Kauppi, Head of Cargo Revenue Management & Pricing, Finnair Source: The Complexities of Air Cargo Revenue Management https://www.kambr.com/articles/the-complexities-of-air-cargo-revenue-management (a) According to Karri Kauppi, cargo revenue management (CRM) is complex. The first thing in CRM is to forecast the air cargo capacity which would depend on factors e.g. the route, the aircraft, the number of passengers, the number of bags and other metrics. Appraise how Karri practises CRM in forecasting air cargo capacity and pricing available cargo space for sale in order to maximize profitability. In your answer, highlight the challenges in air cargo forecasting and examine the factors that impact air cargo forecasts based on Karri's practices. Elaborate further on Karri's practices based on what you have learned in class. Your answer should relate to the article 'The Complexities of Air Cargo Revenue Management' indicated above. (b) Sabre, a technology company offers a software application called Cargo Revenue Manager that helps airlines forecast air cargo capacity and price available space for sale. Details are provided in the reference 'Cargo Revenue Manager', indicated below. Evaluate the effectiveness of this software application in the world where people and businesses are adjusting to a 'new normal' presented by the COVID-19 pandemic. In your answer, think of the data needed for the Cargo Revenue Manager to work in a post-COVID-19 world. Give reasons(s) for your answer.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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