Practice Summaries: American Airlines Uses Should-Cost Modeling to Assess the Uncertainty of Bids for Its Full-Truckload Shipment Routes
p. We used decision analysis to develop a probabilistic model to help American Airlines assess the uncertainty of bid quotes for its full-truckload (FTL) point-to-point freight shipments of maintenance equipment and in-flight service items in the United States. The model reduced the airline’s risk of overpaying an FTL supplier.
Poole College of Management: Michael J. Bailey, John Snapp, Subramani Yetur, Jeffrey S. Stonebraker, Steven A. Edwards
American Airlines: Aaron Davis, Robert Cox
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