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| Content Provider | IEEE Xplore Digital Library |
|---|---|
| Author | Yanming Ge Chaoxiang Pan |
| Copyright Year | 2010 |
| Abstract | Talluri and van Ryzin [1] provide an exact analysis of a single-leg model of revenue management under a discrete choice model of demand. They obtained some perfect conclusions, but the factors of cancellations and no-shows are not considered. This article combines a single-leg problem with these factors and formulates it into a dynamic programming model. From this model we show that the optimal policy for this problem has a quite simple form. Namely, it consists of identifying an ordered family of "efficient" subsets $S_1,\cdots,S_L$, and at each point in time opening one of these sets $S_k$, where the optimal index $k$ is decreasing in the reserved capacity. That is, the less capacity available, the nearer the optimal set is along this sequence. Basing on this property the overbooking management is well implemented. |
| Starting Page | 1 |
| Ending Page | 4 |
| File Size | 120280 |
| Page Count | 4 |
| File Format | |
| ISBN | 9781424453252 |
| DOI | 10.1109/ICMSS.2010.5577183 |
| Language | English |
| Publisher | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Publisher Date | 2010-08-24 |
| Publisher Place | China |
| Access Restriction | Subscribed |
| Rights Holder | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Subject Keyword | Analytical models Consumer behavior Atmospheric modeling Dynamic programming Mathematical model Indexes Equations |
| Content Type | Text |
| Resource Type | Article |
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