Supply Planning at Violet Airlines
Amit Sachan
Indian Institute of Management Ranchi, India
Volume 19: 2025, pp. 53-74; ABSTRACT
This case presents a strategic supply-mix decision facing Violet Airlines as it prepares to operate new international routes. The CEO must determine the optimal configuration of business and economy class seats for a new aircraft, balancing premium revenue opportunities with the need to maintain high load factors. Students use Monte Carlo simulation in Excel to evaluate alternative seating mixes under uncertain demand, applying tools such as Data Tables and Scenario Manager to estimate net revenue across multiple scenarios. The case enables learners to experience how small configuration decisions can significantly affect profitability, operational efficiency, and market positioning. Designed for courses in operations management, management science, and revenue management, the case emphasizes hands-on modelling, datadriven decision-making, and experiential learning. The case also illustrates how similar supplymix challenges arise across service industries such as hotels, restaurants, hospitals, and transportation. This is a fictional teaching case developed solely for academic purposes, and any resemblance to real organizations or individuals is coincidental.
Keywords: revenue management, simulation modeling, seat mix configuration, capacity optimization and service operation.
.jpg)
