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Author: Rainer Hoffmann
Publisher: KIT Scientific Publishing
ISBN: 3731500035
Category : Business & Economics
Languages : en
Pages : 238
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Book Description
This book studies air cargo capacity control problems. The focus is on analyzing decision models with intuitive optimal decisions as well as on developing efficient heuristics and bounds. Three different models are studied: First, a model for steering the availability of cargo space on single legs. Second, a model that simultaneously optimizes the availability of both seats and cargo capacity. Third, a decision model that controls the availability of cargo capacity on a network of flights.
Author: Rainer Hoffmann
Publisher: KIT Scientific Publishing
ISBN: 3731500035
Category : Business & Economics
Languages : en
Pages : 238
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Book Description
This book studies air cargo capacity control problems. The focus is on analyzing decision models with intuitive optimal decisions as well as on developing efficient heuristics and bounds. Three different models are studied: First, a model for steering the availability of cargo space on single legs. Second, a model that simultaneously optimizes the availability of both seats and cargo capacity. Third, a decision model that controls the availability of cargo capacity on a network of flights.
Author: Joongwoo Brian Park
Publisher:
ISBN:
Category :
Languages : en
Pages : 54
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Book Description
Network revenue management is the practice of using optimal decision policies to increase revenues by controlling limited quantities of multiple resources' availability and prices over finite time. It is widely practiced in capacity-constrained service industries such as the airlines, hotels, car rentals, and cruise-lines. A variety of control methods has been introduced for network resource capacity control problem. We propose a clustering method to improve approximation quality. By clustering the legs of the network, one can find tighter upperbound than leg-wise decomposition with loss of computation speed due to larger state space. We have shown that there is more than 6% revenue improvement opportunity by finding the right clustering. With local interchange heuristic and generic heuristics, finding a locally optimal clustering can be done in faster time. We also introduce risk-aversion in network revenue management. We have investigated risk-aversion on network revenue management and also study the impact of risk-aversion parameters in the optimization model on relative revenue-risk performance.
Author: Claudius Steinhardt
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In many service industries, firms offer a portfolio of similar products based on different types of resources. Mismatches between demand and capacity can therefore often be managed by using product upgrades. Clearly, it is desirable to consider this possibility in the revenue management systems that are used to decide on the acceptance of requests. To incorporate upgrades, we build upon different dynamic programming formulations from the literature and gain several new structural insights that facilitate the control process under certain conditions. We then propose two dynamic programming decomposition approaches that extend the traditional decomposition for capacity control by simultaneously considering upgrades as well as capacity control decisions. While the first approach is specifically suited for the multi-day capacity control problem faced, for example, by hotels and car rental companies, the second one is more general and can be applied in arbitrary network revenue management settings that allow upgrading. Both approaches are formally derived and analytically related to each other. It is shown that they give tighter upper bounds on the optimal solution of the original dynamic program than the well-known deterministic linear program. Using data from a major car rental company, we perform computational experiments that show that the proposed approaches are tractable for real-world problem sizes and outperform those disaggregated, successive planning approaches that are used in revenue management practice today.
Author: Christiane Barz
Publisher: Springer Science & Business Media
ISBN: 3540730141
Category : Business & Economics
Languages : en
Pages : 173
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Book Description
This book revises the well-known capacity control problem in revenue management from the perspective of a risk-averse decision-maker. Modelling an expected utility maximizing decision maker, the problem is formulated as a risk-sensitive Markov decision process. Special emphasis is put on the existence of structured optimal policies. Numerical examples illustrate the results.
Author: Rolf Hellermann
Publisher: Springer Science & Business Media
ISBN: 3540344209
Category : Business & Economics
Languages : en
Pages : 208
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Book Description
This book proposes capacity options as a flexible alternative air cargo contract type, and illustrates how capacity can be priced through option contracts. The analysis is accomplished by means of an analytical multivariate optimization model under price and demand uncertainty. A case study using data from a leading German carrier illustrates the financial potential. Finally, the author shows how capacity-option contracts integrate into the context of air cargo revenue management.
Author: Kalyan T. Talluri
Publisher: Springer Science & Business Media
ISBN: 0387273913
Category : Business & Economics
Languages : en
Pages : 731
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Book Description
Revenue management (RM) has emerged as one of the most important new business practices in recent times. This book is the first comprehensive reference book to be published in the field of RM. It unifies the field, drawing from industry sources as well as relevant research from disparate disciplines, as well as documenting industry practices and implementation details. Successful hardcover version published in April 2004.
Author: Rainer Hoffmann
Publisher:
ISBN: 9781000034028
Category :
Languages : en
Pages : 0
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Book Description
This book studies air cargo capacity control problems. The focus is on analyzing decision models with intuitive optimal decisions as well as on developing efficient heuristics and bounds. Three different models are studied: First, a model for steering the availability of cargo space on single legs. Second, a model that simultaneously optimizes the availability of both seats and cargo capacity. Third, a decision model that controls the availability of cargo capacity on a network of flights.
Author: Michael Becher
Publisher: Springer Science & Business Media
ISBN: 3834996505
Category : Business & Economics
Languages : en
Pages : 185
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Book Description
Michael Becher develops a concept for an integrated capacity and price control in revenue management. His concept is based on fuzzy expert controllers and complies with the defined business and application requirements.
Author: Laila Haerian
Publisher:
ISBN:
Category :
Languages : en
Pages : 179
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Book Description
Dynamic programming (DP) is one of the most powerful tools for finding the optimal booking policy for capacity control of a single leg flight. However, the extension of it to a network of flights is impractical due to the exponential growth of the size of the model with number of legs in the network. In this work we develop and use an approximate DP model to find the optimal protection levels on a single leg flight and extend it to a network of flights as well. We develop a Markov chain to calculate the expected revenue that is generated under implementation of a fixed policy at each stage of the approximate DP model and for any remaining capacity and then search for the optimal policy. We use large time chunks in the proposed DP model to decrease the computational effort and show that the resulting expected revenue converges to the expected revenue that is generated under implementation of the original DP approach. Unlike many of the existing models, in our proposed method, nesting is incorporated into the optimization procedure. Furthermore, by using the proposed Markov chain model, the expected generated revenue can be calculated directly and without using simulation.
Author: G. Don Taylor
Publisher: CRC Press
ISBN: 1420004581
Category : Business & Economics
Languages : en
Pages : 640
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Book Description
Achieving state-of-the-art excellence and attaining the cost reductions associated with outstanding logistics efforts is an obvious gain in terms of competitive edge and profitability. As logistics tools evolve in comprehensiveness and complexity, and the use of these new tools becomes more pervasive, maintaining a position of leadership in logisti
