Header

UZH-Logo

Maintenance Infos

Air Cargo Network Revenue Management


Barz, Christiane; Gartner, Daniel (2016). Air Cargo Network Revenue Management. Transportation Science, 50(4):1206-1222.

Abstract

In this paper we discuss heuristics for network air cargo revenue management. We start from a dynamic programming formulation of air cargo network revenue management. Since the curse of dimensionality makes this problem intractable, we suggest several methods, based on linear programming, approximate dynamic programming, and decomposition to obtain both upper bounds and heuristics. We prove relationships between the upper bounds. Furthermore, we analyze the performance of both the bounds as well as the heuristics in a numerical study. In this numerical study, we find that a dynamic programming decomposition yields the tightest bounds. The heuristic based on the decomposition dominates other approaches by giving higher expected net revenues both when applied on the single-leg and on the network cargo problem.

Abstract

In this paper we discuss heuristics for network air cargo revenue management. We start from a dynamic programming formulation of air cargo network revenue management. Since the curse of dimensionality makes this problem intractable, we suggest several methods, based on linear programming, approximate dynamic programming, and decomposition to obtain both upper bounds and heuristics. We prove relationships between the upper bounds. Furthermore, we analyze the performance of both the bounds as well as the heuristics in a numerical study. In this numerical study, we find that a dynamic programming decomposition yields the tightest bounds. The heuristic based on the decomposition dominates other approaches by giving higher expected net revenues both when applied on the single-leg and on the network cargo problem.

Statistics

Citations

Dimensions.ai Metrics

Altmetrics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:October 2016
Deposited On:23 May 2019 09:35
Last Modified:23 May 2019 09:35
Publisher:Institute for Operations Research and the Management Sciences (I N F O R M S)
ISSN:0041-1655
OA Status:Closed
Publisher DOI:https://doi.org/10.1287/trsc.2016.0708
Other Identification Number:merlin-id:14356

Download

Full text not available from this repository.
View at publisher

Get full-text in a library