Danh mục Tài liệu số Thư viện

An LP based approximate dynamic programming model to address airline overbooking under cancellation, refund and no show

In this paper we simultaneously address four constraints relevant to airline revenue management problem: Flight cancellation, customer no-shows, overbooking and refunding. We develop a linear program closely related to the dynamic program formulation of the problem which we later use to approximate the optimal decision rule for rejecting or accepting customers. We give a novel proof that the optimal objective function of this linear program is always an upper bound for the dynamic program.

Từ khóa: Revenue management, Approximate dynamic programming, Airline revenue management problem, Flight cancellation, Customer no-shows