Revenue Management with Flexible Products - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Revenue Management with Flexible Products write by Jochen Gönsch. This book was released on 2014. Revenue Management with Flexible Products available in PDF, EPUB and Kindle. A major benefit of flexible products is that they allow for supply-side substitution even after they have been sold. This helps improve capacity utilization and increase the overall revenue in a sto-chastic environment. As several authors have shown, flexible products can be incorporated into the well-known deterministic linear program (DLP) of revenue management's capacity control. In this paper, we show that flexible products have an additional “value of flexibility” due to their supply-side substitution possibilities, which can be captured monetarily. However, the DLP-based approaches proposed so far fail to capture this value and, thus, steadily undervalue flexible products, resulting in lower overall revenues. To take the full potential of flexible products into account, we propose a new approach that systematically increases the revenues of flexible products when solving the DLP and performing capacity control. A mathematical function of variables available during the booking horizon represents this artificial markup and adapts dynamically to the current situation. We determine the function's parameters using a standard simulation-based optimization method. Numerical experiments show that the benefits of the new approach are biggest when low value demand arrives early. Revenues are improved by up to 5% in many settings.
Revenue Management with Flexible Products
Revenue Management with Flexible Products - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Revenue Management with Flexible Products write by Michael Müller-Bungart. This book was released on 2007-06-26. Revenue Management with Flexible Products available in PDF, EPUB and Kindle. This book analyzes revenue management (RM) problems with flexible products and RM in broadcasting companies. It presents models and methods that explicitly take the implications of flexibility into account. In addition, it contains descriptions of algorithms to generate stochastic demand data streams for general RM problems. To help readers with their own simulation studies, it provides an implementation as a Microsoft Windows executable file.
Revenue Management with Flexible Products
Revenue Management with Flexible Products - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Revenue Management with Flexible Products write by Michael Müller-Bungart. This book was released on 2007-09-18. Revenue Management with Flexible Products available in PDF, EPUB and Kindle. This book analyzes revenue management (RM) problems with flexible products and RM in broadcasting companies. It presents models and methods that explicitly take the implications of flexibility into account. In addition, it contains descriptions of algorithms to generate stochastic demand data streams for general RM problems. To help readers with their own simulation studies, it provides an implementation as a Microsoft Windows executable file.
Dynamic Control Mechanisms for Revenue Management with Flexible Products
Dynamic Control Mechanisms for Revenue Management with Flexible Products - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Dynamic Control Mechanisms for Revenue Management with Flexible Products write by Anita Petrick. This book was released on 2012. Dynamic Control Mechanisms for Revenue Management with Flexible Products available in PDF, EPUB and Kindle. Revenue management with flexible products has experienced a growing interest in the academic literature within the last few years. Flexible products allow supply-side substitution between resources and can therefore help to maximize overall revenue as well as capacity utilization in markets with highly uncertain demand. This paper addresses the question of how the mathematical models which have been developed for capacity control with flexible products should be used over time to exploit the substitution opportunities, while keeping practical applicability in mind. Several dynamic control mechanisms are proposed, each of which makes use of the flexibility to a different extent. A comprehensive computational study shows the potential of the different approaches by revealing their strengths and weaknesses.
Pricing-Based Revenue Management for Flexible Products on a Network
Pricing-Based Revenue Management for Flexible Products on a Network - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Pricing-Based Revenue Management for Flexible Products on a Network write by Dirk Sierag. This book was released on 2016. Pricing-Based Revenue Management for Flexible Products on a Network available in PDF, EPUB and Kindle. This paper proposes and analyses a pricing-based revenue management model that allows flexible products on a network, with a non-trivial extension to group reservations. Under stochastic demand the problem can be solved using a dynamic programming formulation, though it suffers from the curse of dimensionality. The solution under deterministic demand gives an upper bound on the stochastic problem, and serves as a basis for two heuristics, which are asymptotically optimal. Numerical studies show that the heuristics perform well, even under uncertainty in demand. Moreover, neglecting flexible products can lead to substantial revenue loss.
