Revenue management policies for the truck rental industry

Revenue management policies for the truck rental industry

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Article ID: iaor201110102
Volume: 48
Issue: 1
Start Page Number: 202
End Page Number: 214
Publication Date: Jan 2012
Journal: Transportation Research Part E
Authors: , ,
Keywords: vehicle routing & scheduling, programming: dynamic, programming: linear
Abstract:

In this paper, we consider the problem of managing a fleet of trucks with different capacity to serve the requests of different customers that arise randomly over time. The problem is formulated via dynamic programming. Linear programming approximations of the problem are presented and their solutions are exploited to develop partitioned booking limits and bid prices policies. The numerical experiments show that the proposed policies can be profitably used in supporting the decision maker.

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