Risk-Averse Capacity Control in Revenue Management - 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 Risk-Averse Capacity Control in Revenue Management write by Christiane Barz. This book was released on 2007-08-16. Risk-Averse Capacity Control in Revenue Management available in PDF, EPUB and Kindle. This book revises the well-known capacity control problem in revenue management from the perspective of a risk-averse decision-maker. Modelling an expected utility maximizing decision maker, the problem is formulated as a risk-sensitive Markov decision process. Special emphasis is put on the existence of structured optimal policies. Numerical examples illustrate the results.
Capacity Control in Network Revenue Management
Capacity Control in Network Revenue Management - 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 Capacity Control in Network Revenue Management write by Joongwoo Brian Park. This book was released on 2010. Capacity Control in Network Revenue Management available in PDF, EPUB and Kindle. Network revenue management is the practice of using optimal decision policies to increase revenues by controlling limited quantities of multiple resources' availability and prices over finite time. It is widely practiced in capacity-constrained service industries such as the airlines, hotels, car rentals, and cruise-lines. A variety of control methods has been introduced for network resource capacity control problem. We propose a clustering method to improve approximation quality. By clustering the legs of the network, one can find tighter upperbound than leg-wise decomposition with loss of computation speed due to larger state space. We have shown that there is more than 6% revenue improvement opportunity by finding the right clustering. With local interchange heuristic and generic heuristics, finding a locally optimal clustering can be done in faster time. We also introduce risk-aversion in network revenue management. We have investigated risk-aversion on network revenue management and also study the impact of risk-aversion parameters in the optimization model on relative revenue-risk performance.
Practical Decision Rules for Risk-Averse Revenue Management Using Simulation-Based Optimization
Practical Decision Rules for Risk-Averse Revenue Management Using Simulation-Based Optimization - 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 Practical Decision Rules for Risk-Averse Revenue Management Using Simulation-Based Optimization write by Sebastian Koch. This book was released on 2017. Practical Decision Rules for Risk-Averse Revenue Management Using Simulation-Based Optimization available in PDF, EPUB and Kindle. In practice, human-decision makers often feel uncomfortable with the risk-neutral revenue management systems' output. Reasons include a low number of repetitions of similar events, a critical impact of the achieved revenue for economic survival, or simply business constraints imposed by management. However, solving capacity control problems is a challenging task for many risk measures and the approaches are often not compatible with existing software systems.In this paper, we propose a flexible framework for risk-averse capacity control under customer choice behavior. Existing risk-neutral decision rules are augmented by the integration of adjustable parameters. Our key idea is the application of simulation-based optimization (SBO) to calibrate these parameters. This allows to easily tailor the resulting capacity control mechanism to almost every risk measure and customer choice behavior.In an extensive simulation study, we analyze the impact of our approach on expected utility, conditional value-at-risk (CVaR), and expected value. The results show a superior performance in comparison to risk-neutral approaches from literature.
A Survey on Risk-Averse and Robust Revenue Management
A Survey on Risk-Averse and Robust Revenue Management - 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 A Survey on Risk-Averse and Robust Revenue Management write by Jochen Gönsch. This book was released on 2018. A Survey on Risk-Averse and Robust Revenue Management available in PDF, EPUB and Kindle. Many industries use revenue management to balance uncertain, stochastic demand and inflexible capacity. Popular examples include airlines, hotels, car rentals, retailing, and manufacturing. The classical revenue management approaches considered in theory and practice are based on two assumptions. First, demand - as the only uncertain variable - follows a known distribution and, second, risk-neutrality justifies the maximization of expected revenue. Recently, two related streams of literature emerged that do not need these assumptions. Research on risk-averse revenue management acknowledges that, in practice, many decision makers are risk-averse. Research on robust revenue management focuses worst-case scenarios without a known demand distribution, which is especially relevant for new and extremely unstable businesses.This paper motivates the consideration of risk-averse and robust revenue management. We briefly introduce revenue managements' two main methods - capacity control and dynamic pricing - in the classical, risk-neutral setting. Then, we provide an exhaustive review of the literature on risk-averse and robust capacity control and dynamic pricing. In doing so, the relevant decision criteria are briefly introduced. Finally, possible avenues for future research are outlined.
Operations Research Proceedings 2007
Operations Research Proceedings 2007 - 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 Operations Research Proceedings 2007 write by Jörg Kalcsics. This book was released on 2008-03-20. Operations Research Proceedings 2007 available in PDF, EPUB and Kindle. The symposium Operations Research 2007 was held from September 5-7, 2007 at the Saarland University in Saarbru ̈cken. This international conference is at the same time the annual meeting of the German - erations Research Society (GOR). The transition in Germany (and many other countries in Europe) from a production orientation to a service society combined with a continuous demographic change generated a need for intensi?ed Op- ations Research activities in this area. On that account this conference has been devoted to the role of Operations Research in the service industry. The links to Operations Research are manifold and include many di?erent topics which are particularly emphasized in scienti?c sections of OR 2007. More than 420 participants from 30 countries made this event very international and successful. The program consisted of three p- nary,elevensemi-plenaryandmorethan300contributedpresentations, which had been organized in 18 sections. During the conference, the GOR Dissertation and Diploma Prizes were awarded. We congratulate all winners, especially Professor Wolfgang Domschke from the Da- stadt University of Technology, on receiving the GOR Scienti?c Prize Award.
