Integrating the fleet assignment model with uncertain demand

This thesis was submitted for the degree of Master of Philosophy and awarded by Brunel University.One of the main challenges facing the airline industry is planning under uncertainty, especially in the context of schedule disruptions. The robust models and solution algorithms that have been proposed and developed to handle the uncertain parameters will be discussed. Fleet assignment models (FAM) are used by many airlines to assign aircraft to fights in a schedule to maximize profit. In the context of FAM, the goal of robustness is to produce solutions that perform well relative to uncertainties in demand and operation. In this thesis, we introduce new FAMs (i.e. DFAM1 and DFAM2) that tackles the common problem associated with aircraft utilization. Subsequently, stochastic programming (SP) is presented as a method of choice for the research. Through the use of a two-stage SP with recourse technique, the DFAMs are extended to SP-FAMs (SP-FAM1 and SP-FAM2). The main distinction of the SP-FAM compared with other FAMs is that, given a stochastic passenger demand, it gives a strategic fleet assignment solution that hedges against all possible tactical solutions. In addition, we have a tactical solution for every scenario. In generating the demand scenarios, we use a network-simulation model embedded with a time-series engine that gives a snapshot of one week that is representative of any other week of the scheduling season. We later outline the approach of solving the SP-FAMs where the schedule is compacted through several preprocessing steps before inputting it into SAS-AMPL converter. The SAS-AMPL converter prepares all the data into readable AMPL format. Finally, we execute the optimizer using a FortMP solver (integrated in AMPL) that invokes branch-and-bound algorithm. We give a proof of concept using real data from a Middle East airline. Our investigations establish clear benefits of the recourse FAM compared to alternative models. Finally, we propose areas of future research to improve SP-FAM robustness through solution algorithms, revenue management (RM) effects, calibration of network-simulation models and system integration

Integrated network design for forest bioenergy value chain - decisions support system for the transformation of the Canadian forest industry

Les usines de bioénergie devraient jouer un rôle important dans la production d'énergie verte à partir de la biomasse forestière. Pour intégrer l'usine de bioénergie dans la chaîne d'approvisionnement forestière, l'industrie a besoin de nouveaux investissements ainsi que de la conception et de la gestion de la chaîne de valeur. D'un autre côté, les incertitudes associées aux nouveaux produits sur le marché peuvent ajouter des risques supplémentaires à un investissement aussi important dans la chaîne d'approvisionnement forestière instable. Par conséquent, l'objectif principal de cette thèse est d'étudier la conception du réseau de bioénergie forestière dans un contexte déterministe et stochastique. La première partie de la thèse propose une plate-forme expérimentale pour intégrer la conception et le pilotage de la chaîne de valeur puisque le nouveau design ne sera réalisable que s'il considère au préalable la planification. La plateforme a inclus plusieurs actions collaboratives entre tous les partenaires impliqués dans la chaîne d'approvisionnement. Cette plateforme est la base d’un nouvel outil éducatif appelé jeu de transport. Ensuite, la plate-forme a été utilisée pour concevoir un réseau optimisé de bioénergie forestière. La chaîne d'approvisionnement forestière de Terre-Neuve, composée de quatre acteurs majeurs de l’industrie forestière, a été considérée comme notre étude de cas. La rentabilité de l'ajout de nouvelles installations de bioénergie ainsi que de nouveaux terminaux dans plusieurs emplacements potentiels ont été évalués. Enfin, à la troisième partie de la thèse, nous repensons le réseau bioénergétique en tenant compte de l'incertitude de la demande et des prix de tous les produits finaux de la nouvelle chaîne de valeur. Plusieurs bioprocédés potentiels avec différentes technologies ont été évalués dans notre étude de cas. Pour fournir une solution tenant compte du risque, nous avons développé deux nouveaux modèles de gestion des risques. Les résultats dans les trois parties ont clairement démontré l'impact de la planification intégrée, des usines de bioénergie et de la collaboration sur l'amélioration de la performance de la chaîne d'approvisionnement forestière. En général, le travail accompli dans ce projet permettra une transformation en douceur de la chaîne d'approvisionnement forestière en tenant compte des risques d'investissement. En ce qui concerne les résultats obtenus grâce aux études de cas, nous croyons que la plateforme et les approches proposées dans cette thèse peuvent être considérées comme des outils novateurs et pratiques pour le problème de la conception des réseaux de bioénergie forestière.Bioenergy plants are expected to play an important role in green energy production from forestry biomass. To incorporate bioenergy plant in the forest supply chain, the industry requires new investments as well as new value chain design and management. On the other side, the uncertainties associated with demand and price of new products in the market may add risks to such large investment in current forest supply chain. Hence, the main objective of this thesis is to analyze and to propose new design of the forest bioenergy network in both a deterministic and a stochastic context. The first part of the thesis has proposed four optimization models for strategic, tactical and operational planning levels of the supply chain. The models have included several collaborative actions between all involved stakeholders of the supply chain. They have been integrated in a new educational tool called hierarchical transportation game. In the second part of the thesis, we have integrated the developed optimization models to propose an integrated value chain design and value chain management optimization model. This model has been used to analyze a forest bioenergy network in Newfoundland. Newfoundland forest supply chain comprising four major stakeholders was considered as our case study. The profitability of adding a new bioenergy plant as well as new terminals in several potential locations have been evaluated. Finally, in a third part of the thesis we have proposed the bioenergy network taking into account uncertainty on demand and price of all final products of a new value chain. Several potential bioprocesses with different technologies have been evaluated for our case study. To provide a risk-averse solution, we have proposed two risk management models. The results from the three parts of the thesis have demonstrated the impact of integrated planning, bioenergy plants and collaboration on improvement of forest value chain. In general, the work in this thesis can support an efficient transformation of the forest supply chain considering investment risks. The optimization models and approaches proposed in this thesis are novel and practical for the forest bioenergy network design problem

Resource-Constrained Airline Ground Operations: Optimizing Schedule Recovery under Uncertainty

Die zentrale europäische Verkehrsflusssteuerung (englisch: ATFM) und Luftverkehrsgesellschaften (englisch: Airlines) verwenden unterschiedliche Paradigmen für die Priorisierung von Flügen. Während ATFM jeden Flug als individuelle Einheit betrachtet, um die Kapazitätsauslastung aller Sektoren zu steuern, bewerten Airlines jeden Flug als Teilabschnitt eines Flugzeugumlaufes, eines Crew-Einsatzplanes bzw. einer Passagierroute. Infolgedessen sind ATFM-Zeitfenster für Flüge in Kapazitätsengpässen oft schlecht auf die Ressourcenabhängigkeiten innerhalb eines Airline-Netzwerks abgestimmt, sodass die Luftfahrzeug-Bodenabfertigung – als Verbindungselement bzw. Bruchstelle zwischen einzelnen Flügen im Netzwerk – als Hauptverursacher primärer und reaktionärer Verspätungen in Europa gilt. Diese Dissertation schließt die Lücke zwischen beiden Paradigmen, indem sie ein integriertes Optimierungsmodell für die Flugplanwiederherstellung entwickelt. Das Modell ermöglicht Airlines die Priorisierung zwischen Flügen, die von einem ATFM-Kapazitätsengpass betroffen sind, und berücksichtigt dabei die begrenzte Verfügbarkeit von Abfertigungsressourcen am Flughafen. Weiterhin werden verschiedene Methoden untersucht, um die errechneten Flugprioritäten vertraulich innerhalb von kooperativen Lösungsverfahren mit externen Stakeholdern austauschen zu können. Das integrierte Optimierungsmodell ist eine Erweiterung des Resource-Constrained Project Scheduling Problems und integriert das Bodenprozessmanagement von Luftfahrzeugen mit bestehenden Ansätzen für die Steuerung von Flugzeugumläufen, Crew-Einsatzplänen und Passagierrouten. Das Modell soll der Verkehrsleitzentrale einer Airline als taktische Entscheidungsunterstützung dienen und arbeitet dabei mit einer Vorlaufzeit von mehr als zwei Stunden bis zur nächsten planmäßigen Verkehrsspitze. Systemimmanente Unsicherheiten über Prozessabweichungen und mögliche zukünftige Störungen werden in der Optimierung in Form von stochastischen Prozesszeiten und mittels des neu-entwickelten Konzeptes stochastischer Verspätungskostenfunktionen berücksichtigt. Diese Funktionen schätzen die Kosten der Verspätungsausbreitung im Airline-Netzwerk flugspezifisch auf der Basis historischer Betriebsdaten ab, sodass knappe Abfertigungsressourcen am Drehkreuz der Airline den kritischsten Flugzeugumläufen zugeordnet werden können. Das Modell wird innerhalb einer Fallstudie angewendet, um die taktischen Kosten einer Airline in Folge von verschiedenen Flugplanstörungen zu minimieren. Die Analyseergebnisse zeigen, dass die optimale Lösung sehr sensitiv in Bezug auf die Art, den Umfang und die Intensität einer Störung reagiert und es folglich keine allgemeingültige optimale Flugplanwiederherstellung für verschiedene Störungen gibt. Umso dringender wird der Einsatz eines flexiblen und effizienten Optimierungsverfahrens empfohlen, welches die komplexen Ressourcenabhängigkeiten innerhalb eines Airline-Netzwerks berücksichtigt und kontextspezifische Lösungen generiert. Um die Effizienz eines solchen Optimierungsverfahrens zu bestimmen, sollte das damit gewonnene Steuerungspotenzial im Vergleich zu aktuell genutzten Verfahren über einen längeren Zeitraum untersucht werden. Aus den in dieser Dissertation analysierten Störungsszenarien kann geschlussfolgert werden, dass die flexible Standplatzvergabe, Passagier-Direkttransporte, beschleunigte Abfertigungsverfahren und die gezielte Verspätung von Abflügen sehr gute Steuerungsoptionen sind und während 95 Prozent der Saison Anwendung finden könnten, um geringe bis mittlere Verspätungen von Einzelflügen effizient aufzulösen. Bei Störungen, die zu hohen Verspätungen im gesamten Airline-Netzwerk führen, ist eine vollständige Integration aller in Betracht gezogenen Steuerungsoptionen erforderlich, um eine erhebliche Reduzierung der taktischen Kosten zu erreichen. Dabei ist insbesondere die Möglichkeit, Ankunfts- und Abflugzeitfenster zu tauschen, von hoher Bedeutung für eine Airline, um die ihr zugewiesenen ATFM-Verspätungen auf die Flugzeugumläufe zu verteilen, welche die geringsten Einschränkungen im weiteren Tagesverlauf aufweisen. Die Berücksichtigung von Unsicherheiten im nachgelagerten Airline-Netzwerk zeigt, dass eine Optimierung auf Basis deterministischer Verspätungskosten die taktischen Kosten für eine Airline überschätzen kann. Die optimale Flugplanwiederherstellung auf Basis stochastischer Verspätungskosten unterscheidet sich deutlich von der deterministischen Lösung und führt zu weniger Passagierumbuchungen am Drehkreuz. Darüber hinaus ist das vorgeschlagene Modell in der Lage, Flugprioritäten und Airline-interne Kostenwerte für ein zugewiesenes ATFM-Zeitfenster zu bestimmen. Die errechneten Flugprioritäten können dabei vertraulich in Form von optimalen Verspätungszeitfenstern pro Flug an das ATFM übermittelt werden, während die Definition von internen Kostenwerten für ATFM-Zeitfenster die Entwicklung von künftigen Handelsmechanismen zwischen Airlines unterstützen kann.:1 Introduction 2 Status Quo on Airline Operations Management 3 Schedule Recovery Optimization Approach with Constrained Resources 4 Implementation and Application 5 Case Study Analysis 6 ConclusionsAir Traffic Flow Management (ATFM) and airlines use different paradigms for the prioritisation of flights. While ATFM regards each flight as individual entity when it controls sector capacity utilization, airlines evaluate each flight as part of an aircraft rotation, crew pairing and passenger itinerary. As a result, ATFM slot regulations during capacity constraints are poorly coordinated with the resource interdependencies within an airline network, such that the aircraft turnaround -- as the connecting element or breaking point between individual flights in an airline schedule -- is the major contributor to primary and reactionary delays in Europe. This dissertation bridges the gap between both paradigms by developing an integrated schedule recovery model that enables airlines to define their optimal flight priorities for schedule disturbances arising from ATFM capacity constraints. These priorities consider constrained airport resources and different methods are studied how to communicate them confidentially to external stakeholders for the usage in collaborative solutions, such as the assignment of reserve resources or ATFM slot swapping. The integrated schedule recovery model is an extension of the Resource-Constrained Project Scheduling Problem and integrates aircraft turnaround operations with existing approaches for aircraft, crew and passenger recovery. The model is supposed to provide tactical decision support for airline operations controllers at look-ahead times of more than two hours prior to a scheduled hub bank. System-inherent uncertainties about process deviations and potential future disruptions are incorporated into the optimization via stochastic turnaround process times and the novel concept of stochastic delay cost functions. These functions estimate the costs of delay propagation and derive flight-specific downstream recovery capacities from historical operations data, such that scarce resources at the hub airport can be allocated to the most critical turnarounds. The model is applied to the case study of a network carrier that aims at minimizing its tactical costs from several disturbance scenarios. The case study analysis reveals that optimal recovery solutions are very sensitive to the type, scope and intensity of a disturbance, such that there is neither a general optimal solution for different types of disturbance nor for disturbances of the same kind. Thus, airlines require a flexible and efficient optimization method, which considers the complex interdependencies among their constrained resources and generates context-specific solutions. To determine the efficiency of such an optimization method, its achieved network resilience should be studied in comparison to current procedures over longer periods of operation. For the sample of analysed scenarios in this dissertation, it can be concluded that stand reallocation, ramp direct services, quick-turnaround procedures and flight retiming are very efficient recovery options when only a few flights obtain low and medium delays, i.e., 95% of the season. For disturbances which induce high delay into the entire airline network, a full integration of all considered recovery options is required to achieve a substantial reduction of tactical costs. Thereby, especially arrival and departure slot swapping are valuable options for the airline to redistribute its assigned ATFM delays onto those aircraft that have the least critical constraints in their downstream rotations. The consideration of uncertainties in the downstream airline network reveals that an optimization based on deterministic delay costs may overestimate the tactical costs for the airline. Optimal recovery solutions based on stochastic delay costs differ significantly from the deterministic approach and are observed to result in less passenger rebooking at the hub airport. Furthermore, the proposed schedule recovery model is able to define flight priorities and internal slot values for the airline. Results show that the priorities can be communicated confidentially to ATFM by using the concept of 'Flight Delay Margins', while slot values may support future inter-airline slot trading mechanisms.:1 Introduction 2 Status Quo on Airline Operations Management 3 Schedule Recovery Optimization Approach with Constrained Resources 4 Implementation and Application 5 Case Study Analysis 6 Conclusion

Ambulance Emergency Response Optimization in Developing Countries

The lack of emergency medical transportation is viewed as the main barrier to the access of emergency medical care in low and middle-income countries (LMICs). In this paper, we present a robust optimization approach to optimize both the location and routing of emergency response vehicles, accounting for uncertainty in travel times and spatial demand characteristic of LMICs. We traveled to Dhaka, Bangladesh, the sixth largest and third most densely populated city in the world, to conduct field research resulting in the collection of two unique datasets that inform our approach. This data is leveraged to develop machine learning methodologies to estimate demand for emergency medical services in a LMIC setting and to predict the travel time between any two locations in the road network for different times of day and days of the week. We combine our robust optimization and machine learning frameworks with real data to provide an in-depth investigation into three policy-related questions. First, we demonstrate that outpost locations optimized for weekday rush hour lead to good performance for all times of day and days of the week. Second, we find that significant improvements in emergency response times can be achieved by re-locating a small number of outposts and that the performance of the current system could be replicated using only 30% of the resources. Lastly, we show that a fleet of small motorcycle-based ambulances has the potential to significantly outperform traditional ambulance vans. In particular, they are able to capture three times more demand while reducing the median response time by 42% due to increased routing flexibility offered by nimble vehicles on a larger road network. Our results provide practical insights for emergency response optimization that can be leveraged by hospital-based and private ambulance providers in Dhaka and other urban centers in LMICs

Towards Autonomous Aviation Operations: What Can We Learn from Other Areas of Automation?

Rapid advances in automation has disrupted and transformed several industries in the past 25 years. Automation has evolved from regulation and control of simple systems like controlling the temperature in a room to the autonomous control of complex systems involving network of systems. The reason for automation varies from industry to industry depending on the complexity and benefits resulting from increased levels of automation. Automation may be needed to either reduce costs or deal with hazardous environment or make real-time decisions without the availability of humans. Space autonomy, Internet, robotic vehicles, intelligent systems, wireless networks and power systems provide successful examples of various levels of automation. NASA is conducting research in autonomy and developing plans to increase the levels of automation in aviation operations. This paper provides a brief review of levels of automation, previous efforts to increase levels of automation in aviation operations and current level of automation in the various tasks involved in aviation operations. It develops a methodology to assess the research and development in modeling, sensing and actuation needed to advance the level of automation and the benefits associated with higher levels of automation. Section II describes provides an overview of automation and previous attempts at automation in aviation. Section III provides the role of automation and lessons learned in Space Autonomy. Section IV describes the success of automation in Intelligent Transportation Systems. Section V provides a comparison between the development of automation in other areas and the needs of aviation. Section VI provides an approach to achieve increased automation in aviation operations based on the progress in other areas. The final paper will provide a detailed analysis of the benefits of increased automation for the Traffic Flow Management (TFM) function in aviation operations

The Factor-Portfolios Approach to Asset Management using Genetic Algorithms

We present an investment process that: (i) decomposes securities into risk factors; (ii) allows for the construction of portfolios of assets that would selectively expose the manager to desired risk factors; (iii) perform a risk allocation between these portfolios, allowing for tracking error restrictions in the optimization process and (iv) give the flexibility to manage dinamically the transfer coeffficient (TC). The contribution of this article is to present an investment process that allows the asset manager to limit risk exposure to macro-factors - including expectations on correlation dynamics - whilst allowing for selective exposure to risk factors using mimicking portfolios that emulate the behaviour of given specific. An Artificial Intelligence (AI) optimisation technique is used for risk-budget allocation to factor-portfolios.Active Management, Portfolio Optimization, Genetic Algorithms, Propensities. Classification JEL: G11; G14; G32.

Applying Tabu Heuristic to Wind Influenced, Minimum Risk and Maximum Expected Coverage Routes

The purpose of this thesis is to provide Air Combat Command a method for determining the number of predator unmanned aerial vehicles (UAVs) required to cover a pre-selected target. Extending previous research that employs reactive TABU search methods for deterministic vehicle routing problems, this thesis incorporates wind effects that can significantly alter the travel times for any given scenario. Additionally, it accounts for possible attrition by introducing minimum risk route and expected number of target covered to the objective function. The results of the TABU search and subsequent Monte-Carlo simulation: gives the number of predator\u27s required to cover a target set, identifies \u27robust\u27 routes, and suggests routes that increase expected number of targets covered while reducing losses