A Mathematical Programming Approach for the Solution of the Railway Yield Management Problem

A. Ciancimino, G. Inzerillo, S. Lucidi and Laura Palagi
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A. Ciancimino: Datamat—Ingegneria dei Sistemi s.p.a., Via Laurentina 760, 00143 Roma, Italy
G. Inzerillo: Datamat—Ingegneria dei Sistemi s.p.a., Via Laurentina 760, 00143 Roma, Italy
S. Lucidi: Dipartimento di Informatica e Sistemistica, Università di Roma “La Sapienza,” Via Buonarroti 12, 00185 Roma, Italy

Transportation Science, 1999, vol. 33, issue 2, 168-181

Abstract: Railway passenger transportation plays a fundamental role in Europe, particularly in view of the growing number of trains offering valuable services such as high speed travel, high comfort, etc. Hence, it is advantageous to submit seat inventories to a Yield Management system to get the maximum revenue. We consider a deterministic linear programming model and a probabilistic nonlinear programming model for the network problem with non-nested seat allocation. A first comparative analysis of the computational results obtained by the two models, both in terms of the overall expected revenue and in terms of CPU time, is carried out. Furthermore, we describe a new nonlinear algorithm for the solution of the probabilistic nonlinear programming model that exploits the structure of the optimization problem. The numerical results obtained on a set of real data show that, for this class of problems, this algorithm is more efficient than other standard algorithms for nonlinear programming problems.

Date: 1999
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Citations: View citations in EconPapers (38)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:33:y:1999:i:2:p:168-181

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