IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i11p3088-d236087.html
   My bibliography  Save this article

Customer Incentive Rebalancing Plan in Free-Float Bike-Sharing System with Limited Information

Author

Listed:
  • Ruijing Wu

    (Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China)

  • Shaoxuan Liu

    (Ningbo Supply Chain Innovation Institute China, MIT Global Supply Chain and Logistics Excellence (SCALE) Network, Ningbo 315000, China)

  • Zhenyang Shi

    (Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China)

Abstract

Free-float bike-sharing (FFBS) systems have increased in popularity as a sustainable travel mode in recent years, especially in the urban areas of China. Despite the convenience such systems offer to customers, it is not easy to maintain an effective balance in the distribution of bikes. This study considers the dynamic rebalancing problem for FFBS systems, whereby user-based tactics are employed by incentivizing users to perform repositioning activities. Motivated by the fact that the problem is frequently faced by FFBS system operators entering a new market with limited information on travel demand, we adopt the ranking and selection approach to select the optimal incentive plan. We describe the system dynamics in detail, and formulate a profit maximization problem with a constraint on customer service level. Through numerical studies, we first establish that our procedure can select the optimal incentive plan in a wide range of scenarios. Second, under our incentive plan, the profit and service level can be improved significantly compared with the scenario without incentive provision. Third, in most cases, our procedure can achieve the optimal solution with a reasonable sample size.

Suggested Citation

  • Ruijing Wu & Shaoxuan Liu & Zhenyang Shi, 2019. "Customer Incentive Rebalancing Plan in Free-Float Bike-Sharing System with Limited Information," Sustainability, MDPI, vol. 11(11), pages 1-24, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:11:p:3088-:d:236087
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/11/3088/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/11/3088/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Ariel Waserhole & Vincent Jost, 2016. "Pricing in vehicle sharing systems: optimization in queuing networks with product forms," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 5(3), pages 293-320, August.
    4. Eric C. Ni & Dragos F. Ciocan & Shane G. Henderson & Susan R. Hunter, 2017. "Efficient Ranking and Selection in Parallel Computing Environments," Operations Research, INFORMS, vol. 65(3), pages 821-836, June.
    5. Jia Shu & Mabel C. Chou & Qizhang Liu & Chung-Piaw Teo & I-Lin Wang, 2013. "Models for Effective Deployment and Redistribution of Bicycles Within Public Bicycle-Sharing Systems," Operations Research, INFORMS, vol. 61(6), pages 1346-1359, December.
    6. L. Jeff Hong & Jun Luo & Barry L. Nelson, 2015. "Chance Constrained Selection of the Best," INFORMS Journal on Computing, INFORMS, vol. 27(2), pages 317-334, May.
    7. Linfeng Li & Miyuan Shan & Ying Li & Sheng Liang, 2017. "A Dynamic Programming Model for Operation Decision-Making in Bicycle Sharing Systems under a Sustainable Development Perspective," Sustainability, MDPI, vol. 9(6), pages 1-21, June.
    8. Zhang, Yongping & Mi, Zhifu, 2018. "Environmental benefits of bike sharing: A big data-based analysis," Applied Energy, Elsevier, vol. 220(C), pages 296-301.
    9. Linfeng Li & Miyuan Shan, 2016. "Bidirectional Incentive Model for Bicycle Redistribution of a Bicycle Sharing System during Rush Hour," Sustainability, MDPI, vol. 8(12), pages 1-15, December.
    10. Wagner, Sebastian & Brandt, Tobias & Neumann, Dirk, 2016. "In free float: Developing Business Analytics support for carsharing providers," Omega, Elsevier, vol. 59(PA), pages 4-14.
    11. Christine Fricker & Nicolas Gast, 2016. "Incentives and redistribution in homogeneous bike-sharing systems with stations of finite capacity," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 5(3), pages 261-291, August.
    12. Dell’Amico, Mauro & Iori, Manuel & Novellani, Stefano & Subramanian, Anand, 2018. "The Bike sharing Rebalancing Problem with Stochastic Demands," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 362-380.
    13. Shaheen, Susan & Guzman, Stacey & Zhang, Hua, 2010. "Bikesharing in Europe, the Americas, and Asia: Past, Present, and Future," Institute of Transportation Studies, Working Paper Series qt79v822k5, Institute of Transportation Studies, UC Davis.
    14. Elliot Fishman, 2016. "Bikeshare: A Review of Recent Literature," Transport Reviews, Taylor & Francis Journals, vol. 36(1), pages 92-113, January.
    15. Jun Luo & L. Jeff Hong & Barry L. Nelson & Yang Wu, 2015. "Fully Sequential Procedures for Large-Scale Ranking-and-Selection Problems in Parallel Computing Environments," Operations Research, INFORMS, vol. 63(5), pages 1177-1194, October.
    16. Sigrún Andradóttir & Seong‐Hee Kim, 2010. "Fully sequential procedures for comparing constrained systems via simulation," Naval Research Logistics (NRL), John Wiley & Sons, vol. 57(5), pages 403-421, August.
    17. Tianjian Yang & Ye Li & Simin Zhou, 2019. "System Dynamics Modeling of Dockless Bike-Sharing Program Operations: A Case Study of Mobike in Beijing, China," Sustainability, MDPI, vol. 11(6), pages 1-20, March.
    18. Haider, Zulqarnain & Nikolaev, Alexander & Kang, Jee Eun & Kwon, Changhyun, 2018. "Inventory rebalancing through pricing in public bike sharing systems," European Journal of Operational Research, Elsevier, vol. 270(1), pages 103-117.
    19. Shaheen, Susan A & Guzman, Stacey & Zhang, Hua, 2010. "Bikesharing in Europe, the Americas, and Asia: Past, Present and Future," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt6qg8q6ft, Institute of Transportation Studies, UC Berkeley.
    20. Elliot Fishman & Simon Washington & Narelle Haworth, 2013. "Bike Share: A Synthesis of the Literature," Transport Reviews, Taylor & Francis Journals, vol. 33(2), pages 148-165, March.
    21. Erdoğan, Güneş & Laporte, Gilbert & Wolfler Calvo, Roberto, 2014. "The static bicycle relocation problem with demand intervals," European Journal of Operational Research, Elsevier, vol. 238(2), pages 451-457.
    22. Joel Goh & Melvyn Sim, 2010. "Distributionally Robust Optimization and Its Tractable Approximations," Operations Research, INFORMS, vol. 58(4-part-1), pages 902-917, August.
    23. Ranran Yang & Ruyin Long, 2016. "Analysis of the Influencing Factors of the Public Willingness to Participate in Public Bicycle Projects and Intervention Strategies—A Case Study of Jiangsu Province, China," Sustainability, MDPI, vol. 8(4), pages 1-16, April.
    24. Mingyang Du & Lin Cheng, 2018. "Better Understanding the Characteristics and Influential Factors of Different Travel Patterns in Free-Floating Bike Sharing: Evidence from Nanjing, China," Sustainability, MDPI, vol. 10(4), pages 1-14, April.
    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. Dandan Xu & Yang Bian & Jian Rong & Jiachuan Wang & Baocai Yin, 2019. "Study on Clustering of Free-Floating Bike-Sharing Parking Time Series in Beijing Subway Stations," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    2. Chen, Qingxin & Ma, Shoufeng & Li, Hongming & Zhu, Ning & He, Qiao-Chu, 2024. "Optimizing bike rebalancing strategies in free-floating bike-sharing systems: An enhanced distributionally robust approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    3. Zhang, Yuhan & Shao, Yichang & Bi, Hui & Aoyong, Li & Ye, Zhirui, 2023. "Bike-sharing systems rebalancing considering redistribution proportions: A user-based repositioning approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 610(C).
    4. Mohammed Elhenawy & Hesham A. Rakha & Youssef Bichiou & Mahmoud Masoud & Sebastien Glaser & Jack Pinnow & Ahmed Stohy, 2021. "A Feasible Solution for Rebalancing Large-Scale Bike Sharing Systems," Sustainability, MDPI, vol. 13(23), pages 1-19, December.
    5. Li, Xiang & Wang, Xianzhe & Feng, Ziyan, 2024. "Dynamic repositioning in bike-sharing systems with uncertain demand: An improved rolling horizon framework," Omega, Elsevier, vol. 126(C).

    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. Fu, Chenyi & Zhu, Ning & Ma, Shoufeng & Liu, Ronghui, 2022. "A two-stage robust approach to integrated station location and rebalancing vehicle service design in bike-sharing systems," European Journal of Operational Research, Elsevier, vol. 298(3), pages 915-938.
    2. Sharon Datner & Tal Raviv & Michal Tzur & Daniel Chemla, 2019. "Setting Inventory Levels in a Bike Sharing Network," Service Science, INFORMS, vol. 53(1), pages 62-76, February.
    3. Ma, Xinwei & Ji, Yanjie & Yuan, Yufei & Van Oort, Niels & Jin, Yuchuan & Hoogendoorn, Serge, 2020. "A comparison in travel patterns and determinants of user demand between docked and dockless bike-sharing systems using multi-sourced data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 148-173.
    4. Liu, Yixiao & Tian, Zihao & Pan, Baoran & Zhang, Wenbin & Liu, Yunqi & Tian, Lixin, 2022. "A hybrid big-data-based and tolerance-based method to estimate environmental benefits of electric bike sharing," Applied Energy, Elsevier, vol. 315(C).
    5. Mix, Richard & Hurtubia, Ricardo & Raveau, Sebastián, 2022. "Optimal location of bike-sharing stations: A built environment and accessibility approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 126-142.
    6. Kwiatkowski Michał Adam, 2018. "Urban Cycling as an Indicator of Socio-Economic Innovation and Sustainable Transport," Quaestiones Geographicae, Sciendo, vol. 37(4), pages 23-32, December.
    7. Çelebi, Dilay & Yörüsün, Aslı & Işık, Hanife, 2018. "Bicycle sharing system design with capacity allocations," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 86-98.
    8. Jara-Díaz, Sergio & Latournerie, André & Tirachini, Alejandro & Quitral, Félix, 2022. "Optimal pricing and design of station-based bike-sharing systems: A microeconomic model," Economics of Transportation, Elsevier, vol. 31(C).
    9. Gu, Tianqi & Kim, Inhi & Currie, Graham, 2019. "To be or not to be dockless: Empirical analysis of dockless bikeshare development in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 122-147.
    10. Mohammed Elhenawy & Hesham A. Rakha & Youssef Bichiou & Mahmoud Masoud & Sebastien Glaser & Jack Pinnow & Ahmed Stohy, 2021. "A Feasible Solution for Rebalancing Large-Scale Bike Sharing Systems," Sustainability, MDPI, vol. 13(23), pages 1-19, December.
    11. Neumann-Saavedra, Bruno Albert & Mattfeld, Dirk Christian & Hewitt, Mike, 2021. "Assessing the operational impact of tactical planning models for bike-sharing redistribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 216-235.
    12. Rayane El Sibai & Khalil Challita & Jacques Bou Abdo & Jacques Demerjian, 2021. "A New User-Based Incentive Strategy for Improving Bike Sharing Systems’ Performance," Sustainability, MDPI, vol. 13(5), pages 1-18, March.
    13. Ma, Xinwei & Zhang, Shuai & Wu, Tao & Yang, Yizhe & Yu, Jiajie, 2023. "Can dockless and docked bike-sharing substitute each other? Evidence from Nanjing, China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    14. Liangpeng Gao & Yanjie Ji & Xingchen Yan & Yao Fan & Weihong Guo, 2021. "Incentive measures to avoid the illegal parking of dockless shared bikes: the relationships among incentive forms, intensity and policy compliance," Transportation, Springer, vol. 48(2), pages 1033-1060, April.
    15. Chen, Qingxin & Ma, Shoufeng & Li, Hongming & Zhu, Ning & He, Qiao-Chu, 2024. "Optimizing bike rebalancing strategies in free-floating bike-sharing systems: An enhanced distributionally robust approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    16. Negahban, Ashkan, 2019. "Simulation-based estimation of the real demand in bike-sharing systems in the presence of censoring," European Journal of Operational Research, Elsevier, vol. 277(1), pages 317-332.
    17. Haotian Ma & Xinlu Chen & Zhilei Zhen & Qian Wang, 2023. "Bicycle-sharing in Beijing: An Assessment of Economic, Environmental, and Health Effects, and Identification of Key Drivers of Environmental Performance," Networks and Spatial Economics, Springer, vol. 23(1), pages 285-316, March.
    18. Huang, Di & Chen, Xinyuan & Liu, Zhiyuan & Lyu, Cheng & Wang, Shuaian & Chen, Xuewu, 2020. "A static bike repositioning model in a hub-and-spoke network framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    19. Carlos M. Vallez & Mario Castro & David Contreras, 2021. "Challenges and Opportunities in Dock-Based Bike-Sharing Rebalancing: A Systematic Review," Sustainability, MDPI, vol. 13(4), pages 1-26, February.
    20. Imen Haj Salah & Vasu Dev Mukku & Malte Kania & Tom Assmann & Hartmut Zadek, 2022. "Implications of the Relocation Type and Frequency for Shared Autonomous Bike Service: Comparison between the Inner and Complete City Scenarios for Magdeburg as a Case Study," Sustainability, MDPI, vol. 14(10), pages 1-18, May.

    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:gam:jsusta:v:11:y:2019:i:11:p:3088-:d:236087. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.