IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v312y2024i1p138-149.html
   My bibliography  Save this article

Admission and pricing optimization of on-street parking with delivery bays

Author

Listed:
  • Legros, Benjamin
  • Fransoo, Jan C.

Abstract

We analyze a parking lot, modeled as a loss queue, with passenger and delivery vehicles. The arrival process of delivery vehicles is exogenous, while that of passenger vehicles is a function of the parking price rate and accessibility. The aim of the parking operator is to maximize the revenue generated from passenger vehicles while providing a sufficient service level for delivery vehicles, in terms of their probability to find an available parking spot. Two levels of control are exercised: pricing and admission. From a Markov decision process approach, we prove that the optimal policy is a state-dependent reservation threshold policy that randomizes in at most one state. When some parking spots should be reserved for delivery vehicles, the price rate is selected to saturate the service level constraint, whereas when it is optimal not to restrict the parking lot accessibility, the price can also be selected as the unique local maximum of the revenue or to incentivize all potential passenger vehicles to arrive. Pricing should be used as a primary tool to control the flow of passenger vehicles. In complement, admission control is exercised with a limited use of reservation only when the service level guarantee for delivery vehicles is high.

Suggested Citation

  • Legros, Benjamin & Fransoo, Jan C., 2024. "Admission and pricing optimization of on-street parking with delivery bays," European Journal of Operational Research, Elsevier, vol. 312(1), pages 138-149.
    • Handle: RePEc:eee:ejores:v:312:y:2024:i:1:p:138-149
    DOI: 10.1016/j.ejor.2023.07.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221723005404
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2023.07.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kaspi, Mor & Raviv, Tal & Tzur, Michal & Galili, Hila, 2016. "Regulating vehicle sharing systems through parking reservation policies: Analysis and performance bounds," European Journal of Operational Research, Elsevier, vol. 251(3), pages 969-987.
    2. Linda Green & Peter Kolesar, 1991. "The Pointwise Stationary Approximation for Queues with Nonstationary Arrivals," Management Science, INFORMS, vol. 37(1), pages 84-97, January.
    3. Roca-Riu, Mireia & Fernández, Elena & Estrada, Miquel, 2015. "Parking slot assignment for urban distribution: Models and formulations," Omega, Elsevier, vol. 57(PB), pages 157-175.
    4. Ward Whitt, 2005. "Engineering Solution of a Basic Call-Center Model," Management Science, INFORMS, vol. 51(2), pages 221-235, February.
    5. Legros, Benjamin, 2019. "Dynamic repositioning strategy in a bike-sharing system; how to prioritize and how to rebalance a bike station," European Journal of Operational Research, Elsevier, vol. 272(2), pages 740-753.
    6. Yang, Kaidi & Roca-Riu, Mireia & Menéndez, Mónica, 2019. "An auction-based approach for prebooked urban logistics facilities," Omega, Elsevier, vol. 89(C), pages 193-211.
    7. Nourinejad, Mehdi & Wenneman, Adam & Habib, Khandker Nurul & Roorda, Matthew J., 2014. "Truck parking in urban areas: Application of choice modelling within traffic microsimulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 64(C), pages 54-64.
    8. Abhishek, & Legros, Benjamin & Fransoo, Jan C., 2021. "Performance evaluation of stochastic systems with dedicated delivery bays and general on-street parking," Other publications TiSEM 09ed9572-d59c-4f28-a9c4-b, Tilburg University, School of Economics and Management.
    9. Yu, Xinlian & Gao, Song & Hu, Xianbiao & Park, Hyoshin, 2019. "A Markov decision process approach to vacant taxi routing with e-hailing," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 114-134.
    10. Richard Bellman, 1957. "On a Dynamic Programming Approach to the Caterer Problem--I," Management Science, INFORMS, vol. 3(3), pages 270-278, April.
    11. Zhu, Zheng & Ke, Jintao & Wang, Hai, 2021. "A mean-field Markov decision process model for spatial-temporal subsidies in ride-sourcing markets," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 540-565.
    12. Glazer, Amihai & Niskanen, Esko, 2001. "Parking fees and congestion," University of California Transportation Center, Working Papers qt9h51t02k, University of California Transportation Center.
    13. Otis B. Jennings & Avishai Mandelbaum & William A. Massey & Ward Whitt, 1996. "Server Staffing to Meet Time-Varying Demand," Management Science, INFORMS, vol. 42(10), pages 1383-1394, October.
    14. Michael W. Levin & Stephen D. Boyles, 2020. "Optimal Guidance Algorithms for Parking Search with Reservations," Networks and Spatial Economics, Springer, vol. 20(1), pages 19-45, March.
    15. Angelos Aveklouris & Maria Vlasiou & Bert Zwart, 2019. "Bounds and limit theorems for a layered queueing model in electric vehicle charging," Queueing Systems: Theory and Applications, Springer, vol. 93(1), pages 83-137, October.
    16. Schuijbroek, J. & Hampshire, R.C. & van Hoeve, W.-J., 2017. "Inventory rebalancing and vehicle routing in bike sharing systems," European Journal of Operational Research, Elsevier, vol. 257(3), pages 992-1004.
    17. Mor, A. & Speranza, M.G. & Viegas, J.M., 2020. "Efficient loading and unloading operations via a booking system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    18. Fransoo, Jan C. & Cedillo-Campos, M. Gaston & Gamez-Perez, Karla M., 2022. "Estimating the benefits of dedicated unloading bays by field experimentation," Other publications TiSEM 2a1a802f-012c-4d11-93de-e, Tilburg University, School of Economics and Management.
    19. Naor, P, 1969. "The Regulation of Queue Size by Levying Tolls," Econometrica, Econometric Society, vol. 37(1), pages 15-24, January.
    20. Ottosson, Dadi Baldur & Chen, Cynthia & Wang, Tingting & Lin, Haiyun, 2013. "The sensitivity of on-street parking demand in response to price changes: A case study in Seattle, WA," Transport Policy, Elsevier, vol. 25(C), pages 222-232.
    21. Xiao, Jun & Lou, Yingyan & Frisby, Joshua, 2018. "How likely am I to find parking? – A practical model-based framework for predicting parking availability," Transportation Research Part B: Methodological, Elsevier, vol. 112(C), pages 19-39.
    22. Iversen, Emil B. & Morales, Juan M. & Madsen, Henrik, 2014. "Optimal charging of an electric vehicle using a Markov decision process," Applied Energy, Elsevier, vol. 123(C), pages 1-12.
    23. Le Colleter, Théo & Dumez, Dorian & Lehuédé, Fabien & Péton, Olivier, 2023. "Small and large neighborhood search for the park-and-loop routing problem with parking selection," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1233-1248.
    24. Glazer, Amihai & Niskanen, Esko, 1992. "Parking fees and congestion," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 123-132, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fransoo, Jan C. & Escamilla, Rafael & Ge, Jiwen, 2024. "Nanoretail operations in developing markets," Other publications TiSEM 11ea94fa-87eb-41ca-89f6-b, Tilburg University, School of Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Legros, Benjamin & Fransoo, Jan C., 2023. "Admission and pricing optimization of on-street parking with delivery bays," Other publications TiSEM 6d41ee5c-27dc-4d34-aff1-4, Tilburg University, School of Economics and Management.
    2. Abhishek, & Legros, Benjamin & Fransoo, Jan C., 2021. "Performance evaluation of stochastic systems with dedicated delivery bays and general on-street parking," Other publications TiSEM 09ed9572-d59c-4f28-a9c4-b, Tilburg University, School of Economics and Management.
    3. Niyirora, Jerome & Zhuang, Jun, 2017. "Fluid approximations and control of queues in emergency departments," European Journal of Operational Research, Elsevier, vol. 261(3), pages 1110-1124.
    4. Xi Chen & Dave Worthington, 2017. "Staffing of time-varying queues using a geometric discrete time modelling approach," Annals of Operations Research, Springer, vol. 252(1), pages 63-84, May.
    5. Amaya, Johanna & Encarnación, Trilce & Delgado-Lindeman, Maira, 2023. "Understanding Delivery Drivers’ Parking Preferences in Urban Freight Operations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    6. Defraeye, Mieke & Van Nieuwenhuyse, Inneke, 2016. "Staffing and scheduling under nonstationary demand for service: A literature review," Omega, Elsevier, vol. 58(C), pages 4-25.
    7. Burns, Aaron J. & Michalek, Jeremy J. & Samaras, Constantine, 2024. "Estimating the potential for optimized curb management to reduce delivery vehicle double parking, traffic congestion and energy consumption," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    8. Mor, A. & Speranza, M.G. & Viegas, J.M., 2020. "Efficient loading and unloading operations via a booking system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    9. Zohar Feldman & Avishai Mandelbaum & William A. Massey & Ward Whitt, 2008. "Staffing of Time-Varying Queues to Achieve Time-Stable Performance," Management Science, INFORMS, vol. 54(2), pages 324-338, February.
    10. Amer, Ahmed & Chow, Joseph Y.J., 2017. "A downtown on-street parking model with urban truck delivery behavior," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 51-67.
    11. Khordagui, Nagwa, 2019. "Parking prices and the decision to drive to work: Evidence from California," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 479-495.
    12. Nourinejad, Mehdi & Roorda, Matthew J., 2017. "Impact of hourly parking pricing on travel demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 28-45.
    13. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    14. Ge Gao & Huijun Sun & Jianjun Wu, 2019. "Activity-based trip chaining behavior analysis in the network under the parking fee scheme," Transportation, Springer, vol. 46(3), pages 647-669, June.
    15. Legros, Benjamin, 2019. "Dynamic repositioning strategy in a bike-sharing system; how to prioritize and how to rebalance a bike station," European Journal of Operational Research, Elsevier, vol. 272(2), pages 740-753.
    16. Shi, Ziyi & Xu, Meng & Song, Yancun & Zhu, Zheng, 2024. "Multi-Platform dynamic game and operation of hybrid Bike-Sharing systems based on reinforcement learning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 181(C).
    17. Wang, Rui & Yuan, Quan, 2013. "Parking practices and policies under rapid motorization: The case of China," Transport Policy, Elsevier, vol. 30(C), pages 109-116.
    18. Achal Bassamboo & J. Michael Harrison & Assaf Zeevi, 2006. "Design and Control of a Large Call Center: Asymptotic Analysis of an LP-Based Method," Operations Research, INFORMS, vol. 54(3), pages 419-435, June.
    19. Odysseas Kanavetas & Barış Balcıog̃lu, 2022. "The “Sensitive” Markovian queueing system and its application for a call center problem," Annals of Operations Research, Springer, vol. 317(2), pages 651-664, October.
    20. Qian, Zhen (Sean) & Rajagopal, Ram, 2014. "Optimal occupancy-driven parking pricing under demand uncertainties and traveler heterogeneity: A stochastic control approach," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 144-165.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:312:y:2024:i:1:p:138-149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.