A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management Problem
This paper investigates joint decisions on airline network design and capacity allocation by integrating an uncapacitated single allocation p-hub median location problem into a revenue management problem. For the situation in which uncertain demand can be captured by a finite set of scenarios, we ex...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2019-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2019/8651728 |
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| _version_ | 1841524461741801472 |
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| author | Jia-Zhen Huo Yan-Ting Hou Feng Chu Jun-Kai He |
| author_facet | Jia-Zhen Huo Yan-Ting Hou Feng Chu Jun-Kai He |
| author_sort | Jia-Zhen Huo |
| collection | DOAJ |
| description | This paper investigates joint decisions on airline network design and capacity allocation by integrating an uncapacitated single allocation p-hub median location problem into a revenue management problem. For the situation in which uncertain demand can be captured by a finite set of scenarios, we extend this integrated problem with average profit maximization to a combined average-case and worst-case analysis of this integration. We formulate this problem as a two-stage stochastic programming framework to maximize the profit, including the cost of installing the hubs and a weighted sum of average and worst case transportation cost and the revenue from tickets over all scenarios. This model can give flexible decisions by putting the emphasis on the importance of average and worst case profits. To solve this problem, a genetic algorithm is applied. Computational results demonstrate the outperformance of the proposed formulation. |
| format | Article |
| id | doaj-art-6818418624984f5d8d79f0d00f50d496 |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2019-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-6818418624984f5d8d79f0d00f50d4962025-02-03T05:53:12ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2019-01-01201910.1155/2019/86517288651728A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management ProblemJia-Zhen Huo0Yan-Ting Hou1Feng Chu2Jun-Kai He3School of Economics and Management, Tongji University, Shanghai 200092, ChinaSchool of Economics and Management, Tongji University, Shanghai 200092, ChinaLaboratory IBISC, Univ Evry, Université Paris-Saclay, Evry 91025, FranceLaboratory IBISC, Univ Evry, Université Paris-Saclay, Evry 91025, FranceThis paper investigates joint decisions on airline network design and capacity allocation by integrating an uncapacitated single allocation p-hub median location problem into a revenue management problem. For the situation in which uncertain demand can be captured by a finite set of scenarios, we extend this integrated problem with average profit maximization to a combined average-case and worst-case analysis of this integration. We formulate this problem as a two-stage stochastic programming framework to maximize the profit, including the cost of installing the hubs and a weighted sum of average and worst case transportation cost and the revenue from tickets over all scenarios. This model can give flexible decisions by putting the emphasis on the importance of average and worst case profits. To solve this problem, a genetic algorithm is applied. Computational results demonstrate the outperformance of the proposed formulation.http://dx.doi.org/10.1155/2019/8651728 |
| spellingShingle | Jia-Zhen Huo Yan-Ting Hou Feng Chu Jun-Kai He A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management Problem Discrete Dynamics in Nature and Society |
| title | A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management Problem |
| title_full | A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management Problem |
| title_fullStr | A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management Problem |
| title_full_unstemmed | A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management Problem |
| title_short | A Combined Average-Case and Worst-Case Analysis for an Integrated Hub Location and Revenue Management Problem |
| title_sort | combined average case and worst case analysis for an integrated hub location and revenue management problem |
| url | http://dx.doi.org/10.1155/2019/8651728 |
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