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An Optimization Model of the Single-Leg Air Cargo Space Control Based on Markov Decision Process

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  • Chun-rong Qin
  • Li Luo
  • Yang You
  • Yong-xi Xiao

Abstract

Based on the single-leg air cargo issues, we establish a dynamic programming model to consider the overbooking and space inventory control problem. We analyze the structure of optimal booking policy for every kind of booking requests and show that the optimal booking decision is of threshold type (known as booking limit policy). Our research provides a theoretical support for the air cargo space control.

Suggested Citation

  • Chun-rong Qin & Li Luo & Yang You & Yong-xi Xiao, 2012. "An Optimization Model of the Single-Leg Air Cargo Space Control Based on Markov Decision Process," Journal of Applied Mathematics, Hindawi, vol. 2012, pages 1-7, November.
    • Handle: RePEc:hin:jnljam:235706
    DOI: 10.1155/2012/235706
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    Cited by:

    1. Klein, Robert & Koch, Sebastian & Steinhardt, Claudius & Strauss, Arne K., 2020. "A review of revenue management: Recent generalizations and advances in industry applications," European Journal of Operational Research, Elsevier, vol. 284(2), pages 397-412.
    2. Bombelli, Alessandro & Fazi, Stefano, 2022. "The ground handler dock capacitated pickup and delivery problem with time windows: A collaborative framework for air cargo operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    3. Bo Feng & Jixin Zhao & Zheyu Jiang, 2022. "Robust pricing for airlines with partial information," Annals of Operations Research, Springer, vol. 310(1), pages 49-87, March.

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