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The dynamic fleet management problem with uncertain demand and customer chosen service level

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  • Shi, Ning
  • Song, Haiqing
  • Powell, Warren B.

Abstract

In this paper, we study a dynamic fleet management problem with uncertain demands and customer chosen service levels. We first show that the problem can be transformed into a dynamic network with partially dependent random arc capacities, and then develop a structural decomposition approach which decomposes the network recourse problem into a series of tree recourse problems (TRPs). As each TRP can be solved by an efficient algorithm, the decomposition approach can solve the problem very efficiently. We conduct numerical experiments to compare its performance with two alternative methods. Numerical experiments show that the performance of our method is quite encouraging.

Suggested Citation

  • Shi, Ning & Song, Haiqing & Powell, Warren B., 2014. "The dynamic fleet management problem with uncertain demand and customer chosen service level," International Journal of Production Economics, Elsevier, vol. 148(C), pages 110-121.
    • Handle: RePEc:eee:proeco:v:148:y:2014:i:c:p:110-121
    DOI: 10.1016/j.ijpe.2013.09.010
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    References listed on IDEAS

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    Cited by:

    1. Yin, Jiateng & Yang, Lixing & Tang, Tao & Gao, Ziyou & Ran, Bin, 2017. "Dynamic passenger demand oriented metro train scheduling with energy-efficiency and waiting time minimization: Mixed-integer linear programming approaches," Transportation Research Part B: Methodological, Elsevier, vol. 97(C), pages 182-213.
    2. Pérez, Juan & Maldonado, Sebastián & González-Ramírez, Rosa, 2018. "Decision support for fleet allocation and contract renegotiation in contracted open-pit mine blasting operations," International Journal of Production Economics, Elsevier, vol. 204(C), pages 59-69.

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