Developing an Overbooking Fuzzy-Based Mathematical Optimization Model for Multi-Leg Flights

Overbooking is one of the most vital revenue management practices that is used in the airline industry. Identification of an overbooking level is a challenging task due to the uncertainties associated with external factors, such as demand for tickets, and inappropriate overbooking levels which may cause revenue losses as well as loss of reputation and customer loyalty. Therefore, the aim of this paper is to propose a fuzzy linear programming model and Genetic Algorithms (GAs) to maximize the overall revenue of a large-scale multi-leg flight network by minimizing the number of empty seats and the number of denied passengers. A fuzzy logic technique is used for modeling the fuzzy demand on overbooking flight tickets and a metaheuristics-based GA technique is adopted to solve large-scale multi-leg flights problem. As part of model verification, the proposed GA is applied to solve a small multi-leg flight linear programming model with a fuzzified demand factor. In addition, experimentation with large-scale problems with different input parameters’ settings such as penalty rate, show-up rate and demand level are also conducted to understand the behavior of the developed model. The validation results show that the proposed GA produces almost identical results to those in a small-scale multi-leg flight problem. In addition, the performance of the large-scale multi-leg flight network represented by a number of KPIs including total booking, denied passengers and net-overbooking profit towards changing these input parameters will also be revealed

A multi-objective centralised agent-based optimisation approach for vehicle routing problem with unique vehicles

Motivated by heterogeneous service suppliers in crowd shipping routing problems, vehicles’ similarity assumption is questioned in the well-known logistical Vehicle Routing Problems (VRP) by considering different start/end locations, capacities, as well as shifts in the Time Window variant (VRPTW). In order to tackle this problem, a new agent-based metaheuristic architecture is proposed to capture the uniqueness of vehicles by modelling them as agents while governing the search with centralised agent cooperation. This cooperation aims to generate near optimum routes by minimising the number of vehicles used, total travelled distance, and total waiting times. The innovative architecture encapsulates three individual core modules in a flexible metaheuristic implementation. First, the problem is modelled by an agent-based module that includes its components in representing, evaluating, and altering solutions. A second metaheuristic module is then designed and integrated, followed by a multi-objective module introduced to sort solutions generated by the metaheuristic module based on Pareto dominance. Tests on benchmark instances were run, resulting in better waiting times, with an average reduction of 2.21-time units, at the expense of the other objectives. Benchmark instances are modified to tackle the unique vehicle's problem by randomising locations, capacities, and operating shifts and tested to justify the proposed model's applicability

On the Development of a Multilayered Agent-based Heuristic System for Vehicle Routing Problem under Random Vehicle Breakdown

With the recent technological advancement, the Dynamic Vehicle Routing Problem (DVRP) is becoming more applicable but almost all of the research in this field limited the source of dynamism from the order side rather from the vehicle, in addition to the adoption of inflexible tools that are mainly designed for the static problem. Considering multiple random vehicle breakdowns complicates the problem of how to adapt and distribute the workload to other functioning vehicles. In this ongoing PhD research, a proposed multi-layered Agent-Based Model (ABM) along with a modelling framework on how to deal with such disruptive events in a reactive continuous manner. The model is partially constructed and experimented, with a developed clustering rule, on two randomly generated scenario for the purpose of validation. The rule achieved good order allocation to vehicles and reacted to different problem sizes by rejecting orders that are over the model capacity. This shows a promising path in fully adopting the ABM model in this dynamic problem

Developing an Overbooking Fuzzy-Based Mathematical Optimization Model for Multi-Leg Flights

Overbooking is one of the most vital revenue management practices that is used in the airline industry. Identification of an overbooking level is a challenging task due to the uncertainties associated with external factors, such as demand for tickets, and inappropriate overbooking levels which may cause revenue losses as well as loss of reputation and customer loyalty. Therefore, the aim of this paper is to propose a fuzzy linear programming model and Genetic Algorithms (GAs) to maximize the overall revenue of a large-scale multi-leg flight network by minimizing the number of empty seats and the number of denied passengers. A fuzzy logic technique is used for modeling the fuzzy demand on overbooking flight tickets and a metaheuristics-based GA technique is adopted to solve large-scale multi-leg flights problem. As part of model verification, the proposed GA is applied to solve a small multi-leg flight linear programming model with a fuzzified demand factor. In addition, experimentation with large-scale problems with different input parameters’ settings such as penalty rate, show-up rate and demand level are also conducted to understand the behavior of the developed model. The validation results show that the proposed GA produces almost identical results to those in a small-scale multi-leg flight problem. In addition, the performance of the large-scale multi-leg flight network represented by a number of KPIs including total booking, denied passengers and net-overbooking profit towards changing these input parameters will also be revealed

An Agent-Based Optimisation Approach for Vehicle Routing Problem with Unique Vehicle Location and Depot

The Vehicle Routing Problem (VRP) is a well studied logistical problem along with its various variants such as VRP with customer Time-Window (VRPTW). However, all the previously studied variants assume that vehicles are mostly the same in terms of their capacity, location and home location (depot). This study uses the agent-based approach for solving VRPTW with vehicle's unique location and depot. This is to minimise the number of used vehicles as the main target. Other targets including total distance travelled, waiting time and time are also considered as criteria to evaluate the quality of the generated vehicle routes. This is achieved by proposing a Messaging Protocol-based Heuristics Optimisation (MPHO) model that balances between centrally-distributed agents’ interactions and accommodates certain priority rules specifically developed for the problem. Furthermore, modifications to certain constraints checking techniques are introduced by implementing time Push Forward (PF) checking recursively tailored to the route's unique start/ending locations as well as calculating the reduced waiting time to find and check the limit of the total route duration. In order to justify the superiority of the proposed MPHO model, numerical tests have been conducted on benchmark problems including single and multiple depot instances as well as modified instances tailored to the problem. This is made possible by randomising vehicles’ capacities and their unique locations and depots. Key results reveal that, in multiple depot instances, higher quality solutions compared with previous benchmark outcomes are obtained in terms of minimising the total number of vehicles along with fastest solution time (CPU) at the expense of total time and distance travelled