Air-cargo capacity allocation for multiple freight forwarders

Kannapha Amaruchkul and Vichit Lorchirachoonkul

Transportation Research Part E: Logistics and Transportation Review, 2011, vol. 47, issue 1, 30-40

Abstract: We consider a single air-cargo carrier, which wants to allocate cargo capacity to multiple forwarders before a booking horizon starts. A contribution that the carrier earns from each forwarder is based on the actual allotment usage at the end of the horizon. The airline's problem is to choose the allotments that maximize the expected total contribution. We derive a probability distribution of the actual usage by using a discrete Markov chain and solve the problem by using a dynamic programming method. Two heuristics for a large-scale allocation problem are also proposed, and their performances are tested via numerical experiments.

Keywords: Air-cargo; Capacity; management; Stochastic; model; applications (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554510000797
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:47:y:2011:i:1:p:30-40

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().