Scalable Dynamic Bid Prices for Network Revenue Management in Continuous Time

被引:8
作者
Kirshner, Samuel Nathan [1 ]
Nediak, Mikhail [1 ]
机构
[1] Queens Univ, Sch Business, Kingston, ON K7L 3N6, Canada
基金
加拿大自然科学与工程研究理事会;
关键词
network revenue management; dynamic bid prices; second-order cone programming; PROGRAMMING APPROACH;
D O I
10.1111/poms.12356
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
This study develops an approximate optimal control problem to produce time-dependent bid prices for the airline network revenue management problem. The main contributions of our study are the analysis of time-dependent bid prices in continuous time and the use of splines to modify the problem into an approximate second-order cone program (ASOCP). The spline representation of bid prices permits the number of variables to depend solely on the number of resources and not on the size of the booking horizon. The advantage of this framework is the ASOCP's scalability, which we demonstrate by solving for bid prices on an industrial-sized network. The numerical experiments highlight the ASOCP's ability to solve industrial sized problems in seconds.
引用
收藏
页码:1621 / 1635
页数:15
相关论文
共 25 条
[1]   Dynamic bid prices in revenue management [J].
Adelman, Daniel .
OPERATIONS RESEARCH, 2007, 55 (04) :647-661
[2]   Bid-Price Controls for Network Revenue Management: Martingale Characterization of Optimal Bid Prices [J].
Akan, Mustafa ;
Ata, Baris .
MATHEMATICS OF OPERATIONS RESEARCH, 2009, 34 (04) :912-936
[3]   Second-order cone programming [J].
Alizadeh, F ;
Goldfarb, D .
MATHEMATICAL PROGRAMMING, 2003, 95 (01) :3-51
[4]   Arrival rate approximation by nonnegative cubic splines [J].
Alizadeh, Farid ;
Eckstein, Jonathan ;
Noyan, Nilay ;
Rudolf, Gabor .
OPERATIONS RESEARCH, 2008, 56 (01) :140-156
[5]  
[Anonymous], 1981, Point Processes and Queues: Martingale Dynamics
[6]  
[Anonymous], 2001, Analysis
[7]  
[Anonymous], 2000, Handbook of Semidefinite Programming: Theory, Algorithms, and Applications
[8]  
Bitran G., 2003, Manufacturing & Service Operations Management, V5, P203, DOI 10.1287/msom.5.3.203.16031
[9]   Asymptotic behavior of an allocation policy for revenue management [J].
Cooper, WL .
OPERATIONS RESEARCH, 2002, 50 (04) :720-727
[10]   Analysis of Deterministic LP-Based Booking Limit and Bid Price Controls for Revenue Management [J].
Jasin, Stefanus ;
Kumar, Sunil .
OPERATIONS RESEARCH, 2013, 61 (06) :1312-1320