research-article

A Capacity Control Method under Realistic Purchasing Behavior

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Wenguo YangAuthors Info & Claims

ICMSS 2020: Proceedings of the 2020 4th International Conference on Management Engineering, Software Engineering and Service Sciences

Pages 123 - 129

https://doi.org/10.1145/3380625.3380641

Published: 19 May 2020 Publication History

Abstract

We consider the revenue management problem of capacity control under realistic purchasing behavior. Similar to EMSR-a, our method aims to compute the protection levels of each level in a single-leg case. This paper establishes a model to describe the passenger behavior (purchase upgrade/downgrade or give up) when the demand could not be met. Based on this, we build a nonlinear mixed integer programming model to describe the capacity control problem with purchase upgrade/downgrade. Then, an equivalent model easy to solve is presented. Moreover, we proved the equivalence between the two models and presented a two-stage algorithm to solve the equivalent model. Finally, we tested our method on real civil aviation sales data and compared with EMSR methods.

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Cited By

Zhao J(2022)Revenue management model of Passenger Dedicated Line Based on passenger buy up behavior2022 International Conference on Artificial Intelligence of Things and Crowdsensing (AIoTCs)10.1109/AIoTCs58181.2022.00120(520-525)Online publication date: Oct-2022
https://doi.org/10.1109/AIoTCs58181.2022.00120

Index Terms

A Capacity Control Method under Realistic Purchasing Behavior

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ICMSS 2020: Proceedings of the 2020 4th International Conference on Management Engineering, Software Engineering and Service Sciences

January 2020

301 pages

ISBN:9781450376419

DOI:10.1145/3380625

Copyright © 2020 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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China University of Geosciences

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New York, NY, United States

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Published: 19 May 2020

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ICMSS 2020: 2020 4th International Conference on Management Engineering, Software Engineering and Service Sciences

January 17 - 19, 2020

Wuhan, China

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Cited By

Zhao J(2022)Revenue management model of Passenger Dedicated Line Based on passenger buy up behavior2022 International Conference on Artificial Intelligence of Things and Crowdsensing (AIoTCs)10.1109/AIoTCs58181.2022.00120(520-525)Online publication date: Oct-2022
https://doi.org/10.1109/AIoTCs58181.2022.00120

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