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Europcar Integrates Forecasting, Simulation, and Optimization Techniques in a Capacity and Revenue Management System

Author

Listed:
  • Julien Guillen

    (Europcar International, 75017 Paris, France)

  • Pierre Ruiz

    (Europcar International, 75017 Paris, France)

  • Umberto Dellepiane

    (ACT Operations Research, 00198 Rome, Italy)

  • Ludovica Maccarrone

    (ACT Operations Research, 00198 Rome, Italy)

  • Raffaele Maccioni

    (ACT Operations Research, 00198 Rome, Italy)

  • Alessandro Pinzuti

    (ACT Operations Research, 00198 Rome, Italy)

  • Enrico Procacci

    (ACT Operations Research, 00198 Rome, Italy)

Abstract

Europcar, the leading European car rental company, partnered with ACT Operations Research to develop Opticar, an innovative decision support system. The system uses forecasting, discrete-event simulation, and optimization (solved with meta-heuristic algorithms) to provide an integrated approach to revenue and capacity management. Opticar anticipates future demand for Europcar’s vehicle fleet up to six months in advance, thus improving fleet capacity management (vehicle acquisitions, decommissions, and transfers). In addition, it enables Europcar to optimize its approach to revenue management and rental pricing, taking into account its currently available fleet, competitor information, and the expected demand for vehicles. Opticar provides a mathematical approach, which managers in nine countries share and use as a starting point for all daily operations.

Suggested Citation

  • Julien Guillen & Pierre Ruiz & Umberto Dellepiane & Ludovica Maccarrone & Raffaele Maccioni & Alessandro Pinzuti & Enrico Procacci, 2019. "Europcar Integrates Forecasting, Simulation, and Optimization Techniques in a Capacity and Revenue Management System," Interfaces, INFORMS, vol. 49(1), pages 1-40, January.
    • Handle: RePEc:inm:orinte:v:49:y:2019:i:1:p:1-40
    DOI: 10.1287/inte.2018.0970
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    References listed on IDEAS

    as
    1. Li, Dong & Pang, Zhan, 2017. "Dynamic booking control for car rental revenue management: A decomposition approach," European Journal of Operational Research, Elsevier, vol. 256(3), pages 850-867.
    2. Oliveira, Beatriz Brito & Carravilla, Maria Antónia & Oliveira, José Fernando, 2017. "Fleet and revenue management in car rental companies: A literature review and an integrated conceptual framework," Omega, Elsevier, vol. 71(C), pages 11-26.
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    Cited by:

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    3. 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.

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