A Linear Programming Model for Computing Network Bid Prices with Flight Segment Demands
Bid-price control is a popular method for controlling the sale of inventory in revenue management.It is well known that the network capacity control problem can be formulated as a dynamic programming (DP) model.However,this formulation is intractable in practice due to the enormous size of the state space.In this paper,we approximate the optimal dynamic programming value function with an affine function of the state vector and develop our model based on the flight segment demands.We give a column generation procedure for solving our model within a desired optimaliry tolerance,and present numerical results which show the policy perform from our solution approach can outperform that from the standard deterministic linear programming (DLP).
network revenue management dynamic programming bid-price controls linear programming
Feng Liu Qizong Wu Feng Liu Yanan Wang
School of Management and Economics Beijing Institute of Technology Beijing,P.R.China Department of Information Management the Central Institute for Correctional Police Baoding,P.R.China College of economic and management Hebei University of Science and Technology Shijiazhuang,P.R.China
国际会议
太原
英文
214-218
2011-02-26（万方平台首次上网日期，不代表论文的发表时间）