Stochastic programming for multiple-leg network revenue management

Airline seat inventory control is a very profitable tool in the airline industry. Mathematical programming models provide booking limits or bid-prices for all itineraries and fare classes based on demand forecasts. But the actual revenue generated in the booking process fails to meet expectations. Simple deterministic models based on expected demand generate better revenue than more advanced probabilistic models. Recently suggested models put even more effort into demand forecasting. We will show that the dynamic booking process rather than the demand forecasts needs to be addressed. In particular the nesting strategies applied in booking control will counter-effect the profitability of advanced estimation of booking limits and bid-prices.simulation;revenue management;mathematical programming

Integer programming based solution approaches for the train dispatching problem

Railroads face the challenge of competing with the trucking industry in a fastpaced environment. In this respect, they are working toward running freight trains on schedule and reducing travel times. The planned train schedules consist of departure and arrival times at main stations on the rail network. A detailed timetable, on the other hand, consists of the departure and arrival times of each train in each track section of its route. The train dispatching problem aims to determine detailed timetables over a rail network in order to minimize deviations from the planned schedule. We provide a new integer programming formulation for this problem based on a spacetime network; we propose heuristic algorithms to solve it and present computational results of these algorithms. Our approach includes some realistic constraints that have not been previously considered as well as all the assumptions and practical issues considered by the earlier works

airline revenue management

With the increasing interest in decision support systems and the continuous advance of computer science, revenue management is a discipline which has received a great deal of interest in recent years. Although revenue management has seen many new applications throughout the years, the main focus of research continues to be the airline industry. Ever since Littlewood (1972) first proposed a solution method for the airline revenue management problem, a variety of solution methods have been introduced. In this paper we will give an overview of the solution methods presented throughout the literature.revenue management;seat inventory control;OR techniques;mathematical programming

Construction of the Optimal Control Strategy for an Electric-Powered Train

Předložená disertační práce se zabývá popisem charakteru optimální strategie řízení pro elektrický vlak a výpočtem přepínacích okamžiků mezi jednotlivými optimálními jízdními režimy pro standardní typy odporové funkce. S využitím Pontrjaginova principu a souvisejících nástrojů teorie optimálního řízení odvodíme optimální strategii řízení a rovnice pro výpočet přepínacích okamžiků včetně odpovídajících rychlostních profilů. Kromě základního tvaru úlohy o energeticky optimální jízdě vlaku budeme uvažovat i její modifikace zahrnující globální rychlostní omezení, sklon trati i časově-energeticky optimální řízení vlaku. Navíc uvedeme i analýzu řešení s využitím teorie nelineární parametrické optimalizace. Důraz je kladen na exaktní tvar řešení s minimálním využitím numerických metod.This thesis deals with the description of the nature of optimal driving strategy for an electric-powered train as well as the calculation of switching times of optimal driving regimes for standard types of resistance function. We apply the Pontryagin principle and related tools of optimal control theory to develop the optimal driving strategy and to derive equations for computation of switching times and the corresponding speed profiles. Besides the basic form of the energy efficient train control problem we consider also its modifications including the global speed constraint, track gradient as well as time-energy efficient train control. Moreover, we analyse also the solution with use of the theory of nonlinear parametric programming. The emphasize is put on exact forms of solutions with a minimal use of numerical methods.

Delay Management with Re-Routing of Passengers

The question of delay management is whether trains should wait for a delayed feeder trainor should depart on time. In classical delay management models passengers always taketheir originally planned route. In this paper, we propose a model where re-routing ofpassengers is incorporated.To describe the problem we represent it as an event-activity network similar to the oneused in classical delay management, with some additional events to incorporate originand destination of the passengers. We present an integer programming formulation ofthis problem. Furthermore, we discuss the variant in which we assume fixed costs formaintaining connections and we present a polynomial algorithm for the special case ofonly one origin-destination pair. Finally, computational experiments based on real-worlddata from Netherlands Railways show that significant improvements can be obtained bytaking the re-routing of passengers into account in the model.public transportation;OD-pairs;delay management;re-routing

Airline Revenue Management with Shifting Capacity

Airline revenue management is the practice of controlling the booking requests such that the planes are filled with the most profitable passengers. In revenue management the capacities of the business and economy class sections of the plane are traditionally considered to be fixed and distinct capacities. In this paper, we give up this notion and instead consider the use of convertible seats. A row of these seats can be converted from business class seats to economy class seats and vice versa. This offers an airline company the possibility to adjust the capacity configuration of the plane to the demand pattern at hand. We show how to incorporate the shifting capacity opportunity into a dynamic, network-based revenue management model. We also extend the model to include cancellations and overbooking. With a small test case we show that incorporating the shifting capacity opportunity into the revenue management decision indeed provides a means to improve revenues.convertible seats;dynamic capacity management;revenue management;seat inventory control;shifting capacity

Stochastic programming for multiple-leg network revenue management

Airline seat inventory control is a very profitable tool in the airline industry. Mathematical programming models provide booking limits or bid-prices for all itineraries and fare classes based on demand forecasts. But the actual revenue generated in the booking process fails to meet expectations. Simple deterministic models based on expected demand generate better revenue than more advanced probabilistic models. Recently suggested models put even more effort into demand forecasting. We will show that the dynamic booking process rather than the demand forecasts needs to be addressed. In particular the nesting strategies applied in booking control will counter-effect the profitability of advanced estimation of booking limits and bid-prices