Approximation of sell-out probability to estimate expected marginal value of capacity

Date

2020-01-01

Author

Selçuk, Ahmet Melih
Avşar, Zeynep Müge

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

233
views

0
downloads

© 2020 Elsevier LtdIn this study, the dynamic pricing problem is considered for single-leg airline revenue management. The dynamic programming formulation given for this problem is expressed in terms of the expected marginal revenue of capacity. In order to make the formulation applicable in practice, approximations are proposed in this study for estimating the expected marginal revenue term. Numerical tests based on simulating the sales process show that the proposed approximations work well as compared to the exact dynamic programming model.

Subject Keywords

General Engineering, General Computer Science

URI

https://hdl.handle.net/11511/69634

Journal

Computers and Industrial Engineering

DOI

https://doi.org/10.1016/j.cie.2020.106930

Collections

Department of Industrial Engineering, Article

Suggestions

OpenMETU
Core

Exact and heuristic approaches for joint maintenance and spare parts planning Bulbul, Pinar; Bayındır, Zeynep Pelin; Bakal, İsmail Serdar (Elsevier BV, 2019-03-01) In this study, we consider the joint problem of preventive replacement and spare parts inventory planning. We present an exact dynamic programming formulation to minimize the total expected cost over a finite planning horizon. As it is not possible to represent the optimal solution by a well-defined and practical policy, and the dynamic programming recursion is time-consuming to apply, we propose three heuristic approaches that are easy to understand and to implement in practice: (i) Steady-State Approximat...
Beam search algorithm for capacity allocation problem in flexible manufacturing systems Ozpeynirci, Selin Bilgin; Azizoğlu, Meral (Elsevier BV, 2009-05-01) This study considers the operation assignment and tool allocation problem in flexible manufacturing systems. A set of operations together with their required tools are selected so as to maximize the total weight. The machines have limited time and tool magazine capacities and the tools are available in limited quantities. We develop a beam search algorithm and obtain near optimal solutions for large size problems very quickly.
Statistical tolerancing using designed experiments in a noisy environment Köksal, Gülser (Elsevier BV, 2003-03-01) We consider the method of designed experiments for statistical tolerance analysis, and study the impact of experimental error on its results.-It is observed that presence of random error in the experiment environment (e.g. laboratory) could introduce bias in the moment estimators and increases their-respective variances. We propose adjustments to the method that would reduce the bias as well as the variance of these estimators. A numerical example is presented.
Parametric cost estimation system for light rail transit and metro trackworks Gunduz, Murat; Ugur, Latif Onur; Ozturk, Erhan (Elsevier BV; 2011-03-01) The main objective of this work is to develop early cost estimation models for light rail transit and metro trackworks using the multivariable regression and artificial neural network approaches. These two approaches were applied to a data set of 16 projects by using 17 parameters available at the early design phase. The regression analysis estimated the cost of testing samples with an error of 2.32%. On the other hand, artificial neural network estimated the cost with 5.76% error, which was slightly higher...
Quality of floating car data (FCD) as a surrogate measure for urban arterial speed Altintasi, Oruc; Tüydeş Yaman, Hediye; Tuncay, Kağan (Canadian Science Publishing, 2019-12-01) Commercial floating car data (FCD) is being increasingly used as a traffic data source due to its lower cost despite concerns about its reliability. This paper focuses on the evaluation of FCD speed quality as a surrogate measure for arterial speed from different aspects. First, FCD speed is compared to video-based traffic data, collected from a specific urban road segment and assumed as ground truth in (a) descriptive evaluations, (b) speed estimation, and (c) level of service estimation. Regression analys...

Citation Formats

A. M. Selçuk and Z. M. Avşar, “Approximation of sell-out probability to estimate expected marginal value of capacity,” Computers and Industrial Engineering, pp. 0–0, 2020, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/69634.