Revenue maximisation in networks with capacity constraints

J.Q. Hu, Pirooz Vakili and Chenming Zhao

International Journal of Revenue Management, 2009, vol. 3, issue 4, 371-392

Abstract: In this article, we study the revenue maximisation problem for a given network subject to various capacity constraints. Though the problem in general can be formulated as an integer linear programming (ILP) problem, it is computationally infeasible to solve the ILP problem for large networks. We propose several approximate methods. Our methods are mainly based on two steps. First, we order the traffic demands in certain sequence based on their priority indices, and we then route the demands one by one based on their order sequence subject to capacity constraints. Numerical results are provided to validate our methods.

Keywords: revenue maximisation; networks; capacity constraints; ILP; integer linear programming; shortest path; revenue management. (search for similar items in EconPapers)
Date: 2009
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