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We consider a revenue management, network capacity control problem in a setting where heterogeneous customers choose among the various products offered by a firm (e.g., different flight times, fare classes, and/or routings). Customers may therefore substitute if their preferred products are not...
Persistent link: https://www.econbiz.de/10009218847
Discrete choice models are appealing for airline revenue management (RM) because they offer a means to profitably exploit preferences for attributes such as time of day, routing, brand, and price. They are also good at modeling demand for unrestricted fare class structures, which are widespread...
Persistent link: https://www.econbiz.de/10009218667
Gallego et al. [Gallego, G., G. Iyengar, R. Phillips, A. Dubey. 2004. Managing flexible products on a network. CORC Technical Report TR-2004-01, Department of Industrial Engineering and Operations Research, Columbia University, New York.] recently proposed a choice-based deterministic linear...
Persistent link: https://www.econbiz.de/10009218772
We consider a nonlinear nonseparable functional approximation to the value function of a dynamic programming formulation for the network revenue management (RM) problem with customer choice. We propose a simultaneous dynamic programming approach to solve the resulting problem, which is a...
Persistent link: https://www.econbiz.de/10009218861
We consider a stochastic, capacitated production-inventory model in which the customer provides information about the expected timing of future orders to the supplier. We allow for randomness in customer order arrivals as well as the quantity demanded, but work under the assumption that the...
Persistent link: https://www.econbiz.de/10009218588