A revenue management model for sea cargo

A revenue management model for sea cargo

0.00 Avg rating0 Votes
Article ID: iaor200968869
Country: United Kingdom
Volume: 6
Issue: 2
Start Page Number: 195
End Page Number: 222
Publication Date: Jun 2009
Journal: International Journal of Operational Research
Authors: , ,
Keywords: yield management
Abstract:

In this paper, we introduce a revenue management model for an ocean carrier with two classes of orders, namely the ad hoc orders and the contractual orders. When the contractual order is accepted, the carrier can either deliver it immediately or postpone to the next ship on the shipping schedule. This problem is formulated as a stochastic dynamic programming model. We show the existence of the optimal threshold policy. Some important properties of the threshold policy are discussed. Finally, the numerical result shows that the percentage improvement of the threshold policy over an existing policy may be as high as 199%.

Reviews

Required fields are marked *. Your email address will not be published.