In this insightful video on Capacity Allocation for our Operations and Revenue Analytics course, we introduce the Two-Class Model, a powerful framework for optimizing resource allocation in environments with varying customer segments. We will begin with an overview of the Two-Class Model, explaining its relevance in capacity management. Next, we’ll delve into the Decision Tree Approach, illustrating how to make informed decisions regarding capacity allocation based on customer behavior and demand patterns. Finally, we will discuss Littlewood’s Rule, a key principle that guides effective capacity allocation strategies.