Please use this identifier to cite or link to this item:
|Title:||A Markov model for single-leg air cargo revenue management under a bid-price policy|
|Keywords:||OR in airlines|
|Source:||Han, D.L., Tang, L.C., Huang, H.C. (2010-02-01). A Markov model for single-leg air cargo revenue management under a bid-price policy. European Journal of Operational Research 200 (3) : 800-811. ScholarBank@NUS Repository. https://doi.org/10.1016/j.ejor.2009.02.001|
|Abstract:||In this paper, we consider the capacity allocation problem in single-leg air cargo revenue management. We assume that each cargo booking request is endowed with a random weight, volume and profit rate and propose a Markovian model for the booking request/acceptance/rejection process. The decision on whether to accept the booking request or to reserve the capacity for future bookings follows a bid-price control policy. In particular, a cargo will be accepted only when the revenue from accepting it exceeds the opportunity cost, which is calculated based on bid prices. Optimal solutions are derived by maximizing a reward function of a Markov chain. Numerical comparisons between the proposed approach and two existing static single-leg air cargo capacity allocation policies are presented. © 2009 Elsevier B.V. All rights reserved.|
|Source Title:||European Journal of Operational Research|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Dec 6, 2017
WEB OF SCIENCETM
checked on Nov 22, 2017
checked on Dec 10, 2017
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.