Dynamic pricing under customer choice behavior for revenue management in passenger railway networks

Revenue management (RM) for passenger railway is a small but active research field with an increasing attention during the past years. However, a detailed look into existing research shows that most of the current models in theory rely on traditional RM techniques and that advanced models are rare. This thesis aims to close the gap by proposing a state-of-the-art passenger railway pricing model that covers the most important properties from practice, with a special focus on the German railway network and long-distance rail company Deutsche Bahn Fernverkehr (DB). The new model has multiple advantages over DB’s current RM system. Particularly, it uses a choice-based demand function rather than a traditional independent demand model, is formulated as a network model instead of the current leg-based approach and finally optimizes prices on a continuous level instead of controlling booking classes. Since each itinerary in the network is considered by multiple heterogeneous customer segments (e.g., differentiated by travel purpose, desired departure time) a discrete mixed multinomial logit model (MMNL) is applied to represent demand. Compared to alternative choice models such as the multinomial logit model (MNL) or the nested logit model (NL), the MMNL is significantly less considered in pricing research. Furthermore, since the resulting deterministic multi-product multi-resource dynamic pricing model under the MMNL turns out to be non- linear non-convex, an open question is still how to obtain a globally optimal solution. To narrow this gap, this thesis provides multiple approaches that make it able to derive a solution close to the global optimum. For medium-sized networks, a mixed-integer programming approach is proposed that determines an upper bound close to the global optimum of the original model (gap < 1.5%). For large-scale networks, a heuristic approach is presented that significantly decreases the solution time (by factor up to 56) and derives a good solution for an application in practice. Based on these findings, the model and heuristic are extended to fit further price constraints from railway practice and are tested in an extensive simulation study. The results show that the new pricing approach outperforms both benchmark RM policies (i.e., DB’s existing model and EMSR-b) with a revenue improvement of approx. +13-15% over DB’s existing approach under a realistic demand scenario. Finally, to prepare data for large-scale railway networks, an algorithm is presented that automatically derives a large proportion of necessary data to solve choice-based network RM models. This includes, e.g., the set of all meaningful itineraries (incl. transfers) and resources in a network, the corresponding resource consumption and product attribute values such as travel time or number of transfers. All taken together, the goal of this thesis is to give a broad picture about choice-based dynamic pricing for passenger railway networks

Crowdsensing-driven route optimisation algorithms for smart urban mobility

Urban rörlighet anses ofta vara en av de främsta möjliggörarna för en hållbar statsutveckling. Idag skulle det dock kräva ett betydande skifte mot renare och effektivare stadstransporter vilket skulle stödja ökad social och ekonomisk koncentration av resurser i städerna. En viktig prioritet för städer runt om i världen är att stödja medborgarnas rörlighet inom stadsmiljöer medan samtidigt minska trafikstockningar, olyckor och föroreningar. Att utveckla en effektivare och grönare (eller med ett ord; smartare) stadsrörlighet är en av de svåraste problemen att bemöta för stora metropoler. I denna avhandling närmar vi oss problemet från det snabba utvecklingsperspektivet av ITlandskapet i städer vilket möjliggör byggandet av rörlighetslösningar utan stora stora investeringar eller sofistikerad sensortenkik. I synnerhet föreslår vi utnyttjandet av den mobila rörlighetsavkännings, eng. Mobile Crowdsensing (MCS), paradigmen i vilken befolkningen exploaterar sin mobilkommunikation och/eller mobilasensorer med syftet att frivilligt samla, distribuera, lokalt processera och analysera geospecifik information. Rörlighetavkänningssdata (t.ex. händelser, trafikintensitet, buller och luftföroreningar etc.) inhämtad från frivilliga i befolkningen kan ge värdefull information om aktuella rörelsesförhållanden i stad vilka, med adekvata databehandlingsalgoriter, kan användas för att planera människors rörelseflöden inom stadsmiljön. Såtillvida kombineras i denna avhandling två mycket lovande smarta rörlighetsmöjliggörare, eng. Smart Mobility Enablers, nämligen MCS och rese/ruttplanering. Vi kan därmed till viss utsträckning sammanföra forskningsutmaningar från dessa två delar. Vi väljer att separera våra forskningsmål i två delar, dvs forskningssteg: (1) arkitektoniska utmaningar vid design av MCS-system och (2) algoritmiska utmaningar för tillämpningar av MCS-driven ruttplanering. Vi ämnar att visa en logisk forskningsprogression över tiden, med avstamp i mänskligt dirigerade rörelseavkänningssystem som MCS och ett avslut i automatiserade ruttoptimeringsalgoritmer skräddarsydda för specifika MCS-applikationer. Även om vi förlitar oss på heuristiska lösningar och algoritmer för NP-svåra ruttproblem förlitar vi oss på äkta applikationer med syftet att visa på fördelarna med algoritm- och infrastrukturförslagen.La movilidad urbana es considerada una de las principales desencadenantes de un desarrollo urbano sostenible. Sin embargo, hoy en día se requiere una transición hacia un transporte urbano más limpio y más eficiente que soporte una concentración de recursos sociales y económicos cada vez mayor en las ciudades. Una de las principales prioridades para las ciudades de todo el mundo es facilitar la movilidad de los ciudadanos dentro de los entornos urbanos, al mismo tiempo que se reduce la congestión, los accidentes y la contaminación. Sin embargo, desarrollar una movilidad urbana más eficiente y más verde (o en una palabra, más inteligente) es uno de los temas más difíciles de afrontar para las grandes áreas metropolitanas. En esta tesis, abordamos este problema desde la perspectiva de un panorama TIC en rápida evolución que nos permite construir movilidad sin la necesidad de grandes inversiones ni sofisticadas tecnologías de sensores. En particular, proponemos aprovechar el paradigma Mobile Crowdsensing (MCS) en el que los ciudadanos utilizan sus teléfonos móviles y dispositivos, para nosotros recopilar, procesar y analizar localmente información georreferenciada, distribuida voluntariamente. Los datos de movilidad recopilados de ciudadanos que voluntariamente quieren compartirlos (por ejemplo, eventos, intensidad del tráfico, ruido y contaminación del aire, etc.) pueden proporcionar información valiosa sobre las condiciones de movilidad actuales en la ciudad, que con el algoritmo de procesamiento de datos adecuado, pueden utilizarse para enrutar y gestionar el flujo de gente en entornos urbanos. Por lo tanto, en esta tesis combinamos dos prometedoras fuentes de movilidad inteligente: MCS y la planificación de viajes/rutas, uniendo en cierta medida los distintos desafíos de investigación. Hemos dividido nuestros objetivos de investigación en dos etapas: (1) Desafíos arquitectónicos en el diseño de sistemas MCS y (2) Desafíos algorítmicos en la planificación de rutas aprovechando la información del MCS. Nuestro objetivo es demostrar una progresión lógica de la investigación a lo largo del tiempo, comenzando desde los fundamentos de los sistemas de detección centrados en personas, como el MCS, hasta los algoritmos de optimización de rutas diseñados específicamente para la aplicación de estos. Si bien nos centramos en algoritmos y heurísticas para resolver problemas de enrutamiento de clase NP-hard, utilizamos ejemplos de aplicaciones en el mundo real para mostrar las ventajas de los algoritmos e infraestructuras propuestas

Optimizing Coordinated Vehicle Platooning: An Analytical Approach Based on Stochastic Dynamic Programming

Platooning connected and autonomous vehicles (CAVs) can improve traffic and fuel efficiency. However, scalable platooning operations require junction-level coordination, which has not been well studied. In this paper, we study the coordination of vehicle platooning at highway junctions. We consider a setting where CAVs randomly arrive at a highway junction according to a general renewal process. When a CAV approaches the junction, a system operator determines whether the CAV will merge into the platoon ahead according to the positions and speeds of the CAV and the platoon. We formulate a Markov decision process to minimize the discounted cumulative travel cost, i.e. fuel consumption plus travel delay, over an infinite time horizon. We show that the optimal policy is threshold-based: the CAV will merge with the platoon if and only if the difference between the CAV's and the platoon's predicted times of arrival at the junction is less than a constant threshold. We also propose two ready-to-implement algorithms to derive the optimal policy. Comparison with the classical value iteration algorithm implies that our approach explicitly incorporating the characteristics of the optimal policy is significantly more efficient in terms of computation. Importantly, we show that the optimal policy under Poisson arrivals can be obtained by solving a system of integral equations. We also validate our results in simulation with Real-time Strategy (RTS) using real traffic data. The simulation results indicate that the proposed method yields better performance compared with the conventional method

Latent variables and route choice behavior

In the last decade, a broad array of disciplines has shown a general interest in enhancing discrete choice models by considering the incorporation of psychological factors affecting decision making. This paper provides insight into the comprehension of the determinants of route choice behavior by proposing and estimating a hybrid model that integrates latent variable and route choice models. Data contain information about latent variable indicators and chosen routes of travelers driving regularly from home to work in an urban network. Choice sets include alternative routes generated with a branch and bound algorithm. A hybrid model consists of measurement equations, which relate latent variables to measurement indicators and utilities to choice indicators, and structural equations, which link travelers' observable characteristics to latent variables and explanatory variables to utilities. Estimation results illustrate that considering latent variables (i.e., memory, habit, familiarity, spatial ability, time saving skills) alongside traditional variables (e.g., travel time, distance, congestion level) enriches the comprehension of route choice behavior

Data-driven Methodologies and Applications in Urban Mobility

The world is urbanizing at an unprecedented rate where urbanization goes from 39% in 1980 to 58% in 2019 (World Bank, 2019). This poses more and more transportation demand and pressure on the already at or over-capacity old transport infrastructure, especially in urban areas. Along the same timeline, more data generated as a byproduct of daily activity are being collected via the advancement of the internet of things, and computers are getting more and more powerful. These are shown by the statistics such as 90% of the world’s data is generated within the last two years and IBM’s computer is now processing at the speed of 120,000 GPS points per second. Thus, this dissertation discusses the challenges and opportunities arising from the growing demand for urban mobility, particularly in cities with outdated infrastructure, and how to capitalize on the unprecedented growth in data in solving these problems by ways of data-driven transportation-specific methodologies. The dissertation identifies three primary challenges and/or opportunities, which are (1) optimally locating dynamic wireless charging to promote the adoption of electric vehicles, (2) predicting dynamic traffic state using an enormously large dataset of taxi trips, and (3) improving the ride-hailing system with carpooling, smart dispatching, and preemptive repositioning. The dissertation presents potential solutions/methodologies that have become available only recently thanks to the extraordinary growth of data and computers with explosive power, and these methodologies are (1) bi-level optimization planning frameworks for locating dynamic wireless charging facilities, (2) Traffic Graph Convolutional Network for dynamic urban traffic state estimation, and (3) Graph Matching and Reinforcement Learning for the operation and management of mixed autonomous electric taxi fleets. These methodologies are then carefully calibrated, methodically scrutinized under various performance metrics and procedures, and validated with previous research and ground truth data, which is gathered directly from the real world. In order to bridge the gap between scientific discoveries and practical applications, the three methodologies are applied to the case study of (1) Montgomery County, MD, (2) the City of New York, and (3) the City of Chicago and from which, real-world implementation are suggested. This dissertation’s contribution via the provided methodologies, along with the continual increase in data, have the potential to significantly benefit urban mobility and work toward a sustainable transportation system

OPTIMIZATION OF RAILWAY TRANSPORTATION HAZMATS AND REGULAR COMMODITIES

Transportation of dangerous goods has been receiving more attention in the realm of academic and scientific research during the last few decades as countries have been increasingly becoming industrialized throughout the world, thereby making Hazmats an integral part of our life style. However, the number of scholarly articles in this field is not as many as those of other areas in SCM. Considering the low-probability-and-high-consequence (LPHC) essence of transportation of Hazmats, on the one hand, and immense volume of shipments accounting for more than hundred tons in North America and Europe, on the other, we can safely state that the number of scholarly articles and dissertations have not been proportional to the significance of the subject of interest. On this ground, we conducted our research to contribute towards further developing the domain of Hazmats transportation, and sustainable supply chain management (SSCM), in general terms. Transportation of Hazmats, from logistical standpoint, may include all modes of transport via air, marine, road and rail, as well as intermodal transportation systems. Although road shipment is predominant in most of the literature, railway transportation of Hazmats has proven to be a potentially significant means of transporting dangerous goods with respect to both economies of scale and risk of transportation; these factors, have not just given rise to more thoroughly investigation of intermodal transportation of Hazmats using road and rail networks, but has encouraged the competition between rail and road companies which may indeed have some inherent advantages compared to the other medium due to their infrastructural and technological backgrounds. Truck shipment has ostensibly proven to be providing more flexibility; trains, per contra, provide more reliability in terms of transport risk for conveying Hazmats in bulks. In this thesis, in consonance with the aforementioned motivation, we provide an introduction into the hazardous commodities shipment through rail network in the first chapter of the thesis. Providing relevant statistics on the volume of Hazmat goods, number of accidents, rate of incidents, and rate of fatalities and injuries due to the incidents involving Hazmats, will shed light onto the significance of the topic under study. As well, we review the most pertinent articles while putting more emphasis on the state-of-the-art papers, in chapter two. Following the discussion in chapter 3 and looking at the problem from carrier company’s perspective, a mixed integer quadratically constraint problem (MIQCP) is developed which seeks for the minimization of transportation cost under a set of constraints including those associating with Hazmats. Due to the complexity of the problem, the risk function has been piecewise linearized using a set of auxiliary variables, thereby resulting in an MIP problem. Further, considering the interests of both carrier companies and regulatory agencies, which are minimization of cost and risk, respectively, a multiobjective MINLP model is developed, which has been reduced to an MILP through piecewise linearization of the risk term in the objective function. For both single-objective and multiobjective formulations, model variants with bifurcated and nonbifurcated flows have been presented. Then, in chapter 4, we carry out experiments considering two main cases where the first case presents smaller instances of the problem and the second case focuses on a larger instance of the problem. Eventually, in chapter five, we conclude the dissertation with a summary of the overall discussion as well as presenting some comments on avenues of future work

New approaches to airline recovery problems

Air traffic disruptions result in fight delays, cancellations, passenger misconnections, creating high costs to aviation stakeholders. This dissertation studies two directions in the area of airline disruption management – an area of significant focus in reducing airlines’ operating costs. These directions are: (i) a joint proactive and reactive approach to airline disruption management, and (ii) a dynamic aircraft and passenger recovery approach to evaluate the long-term effects of climate change on airline network recoverability. Our first direction proposes a joint proactive and reactive approach to airline disruption management, which optimizes recovery decisions in response to realized disruptions and in anticipation of future disruptions. Specifically, it forecasts future disruptions partially and probabilistically by estimating systemic delays at hub airports (and the uncertainty thereof) and ignoring other contingent disruption sources. It formulates a dynamic stochastic integer programming framework to minimize network-wide expected disruption recovery costs. Specifically, our Stochastic Reactive and Proactive Disruption Management (SRPDM) model combines a stochastic queuing model of airport congestion, a fight planning tool from Boeing/Jeppesen and an integer programming model of airline disruption recovery. We develop an online solution procedure based on look-ahead approximation and sample average approximation, which enables the model's implementation in short computational times. Experimental results show that leveraging partial and probabilistic estimates of future disruptions can reduce expected recovery costs by 1-2%, as compared to a baseline myopic approach that uses realized disruptions alone. These benefits are mainly driven by the deliberate introduction of departure holds to reduce expected fuel costs, fight cancellations and aircraft swaps. Our next direction studies the impact of climate change-imposed constraints on the recoverability of airline networks. We first use models that capture the modified payload-range curves for different aircraft types under multiple climate change scenarios, and the associated (reduced) aircraft capacities. We next construct a modeling and algorithmic framework that allows for simultaneous and integrated aircraft and passenger recovery that explicitly capture the above-mentioned capacity changes in aircraft at different times of day. Our computational results using the climate model on a worst-case, medium-case, and mild-case climate change scenarios project that daily total airline recovery costs increase on average, by 25% to 55.9% on average ; and by 10.6% to 156% over individual disrupted days. Aircraft-related costs are driven by a huge increase in aircraft swaps and cancelations; and passenger-related costs are driven by increases in disrupted passengers who need to be rebooked on the same or a different airline. Our work motivates the critical need for airlines to systematically incorporate climate change as a factor in the design of aircraft as well as in the design and operations of airline networks