A CONTINUOUS-TIME SEAT ALLOCATION MODEL WITH UP-DOWN RESETS

Kimitoshi Sato and Katsushige Sawaki
Additional contact information
Kimitoshi Sato: Nanzan University, Seirei-cho, Seto-shi, 489-0863, Japan
Katsushige Sawaki: Nanzan University, Seirei-cho, Seto-shi, 489-0863, Japan

Chapter 8 in Recent Advances in Stochastic Operations Research II, 2009, pp 99-113 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractIn this paper we consider an airline seat inventory model, in which the planning horizon is continuous time, and the demands for low and high fares are independent random variables, respectively. An initial booking limit for the low fare demands can be revised to reset upward or downward, depending on whether the amount of high fare demands is large enough or not after the certain period of time. After developing a general framework of the continuous-time seat inventory model, we derive the expected revenue function under the fore-mentioned booking policy and explore some analytical properties of optimal booking policies. This model takes into account the Japanese practices in the airline industry. Our model differs from existing literatures in a sense that booking policies are allowed for upward or downward reset. We also provide some numerical examples to illustrate the value function and optimal booking policies.

Keywords: Operations Research; Uncertainty; Applied Probability; Stochastic Process; Optimization; Decision Science (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789812791672_0008 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789812791672_0008 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789812791672_0008

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().