Title: A simulation analysis for the re-solving issue of the network revenue management problem
Authors: Huang, Kuancheng
Lin, Chia-Yi
運輸與物流管理系 註:原交通所+運管所
Department of Transportation and Logistics Management
Keywords: Network revenue management;Seat inventory control;Re-solving issue;Simulation
Issue Date: 1-Jun-2014
Abstract: The classic dynamic programming approach is not applicable to the airline network revenue management (RM) problem of a practical size due to the curse of dimensionality. Many heuristic methods, including the most popular bid-price control approach, generate the approximate control decisions based on various static formulations, which need to be re-solved to take into account the dynamic features of the problem. By a simulation experiment, this study examines the re-solving issue of the bid-price method and tests a new method, the parameterized function approach, in which no problem-resolving is required. Based on the results, the parameterized function approach is found to be a promising alternative. As for the bid-price control approach, a high re-solving frequency is needed for a good result. (C) 2014 Elsevier Ltd. All rights reserved.
URI: http://dx.doi.org/10.1016/j.jairtraman.2013.12.016
ISSN: 0969-6997
DOI: 10.1016/j.jairtraman.2013.12.016
Volume: 38
Begin Page: 36
End Page: 42
Appears in Collections:Articles

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