Simulation-based optimization of virtual nesting controls for network revenue management

Operations Research

Volumn 56, Issue 4, 2008, Pages 865-880

  Van Ryzin, Garrett ^a   Vulcano, Gustavo ^b  

^a Och Spine at New York Presbyterian Hospitals   (United States)

^b NEW YORK UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CAPACITY CONTROLS; CONTINUOUS MODELS; CONTROL SCHEMES; DE BOERS; DISCRETE MODELS; DISCRETE PROBLEMS; GRADIENT ESTIMATES; IN NETWORKS; MODEL RESULTS; OPTIMIZATION PROBLEMS; ORDER OF MAGNITUDES; PERFORMANCE IMPROVEMENTS; PROTECTION LEVELS; RECURSION; REVENUE MANAGEMENTS; SIMULATION APPROACHES; SIMULATION-BASED; SIMULATION-BASED OPTIMIZATIONS; STOCHASTIC GRADIENT METHODS; TEST PROBLEMS; VIRTUAL CLASS;

CHANNEL CAPACITY; CONVERGENCE OF NUMERICAL METHODS; GRADIENT METHODS; MANAGEMENT; NETWORK MANAGEMENT; OPTIMIZATION; STOCHASTIC MODELS;

HEURISTIC METHODS;

EID: 61349103795     PISSN: 0030364X     EISSN: 15265463     Source Type: Journal    
DOI: 10.1287/opre.1080.0550     Document Type: Article

References (39)

1. Belobaba, P. 1987. Air travel demand and airline seat inventory management. Ph.D thesis, Flight Transportation Laboratory, Massachusetts Institute of Technology, Cambridge, MA.
2. Belobaba, P. 1989. Application of a probabilistic decision model to airline seat inventory control. Oper: Res. 37 183-197.
3. Belobaba, P. 1992. Optimal vs. heuristic methods for nested seat allocation. Proc. AGIFORS Reservations and Yield Management Study Group, Brussels, Belgium, 28-53.
4. Belobaba, P. 2001. Revenue and competitive impact of O-D control: Summary of PODS results. First Annual INFORMS Revenue Management Section. Meeting. Columbia University, New York.
5. Belobaba P., S. Lee. 2000. PODS update: Large network O-D control results. AGIFORS Revenue Management Study Group Meeting, New York.
6. Benveniste A., M. Métivier, P. Priouret. 1990. Adaptive Algorithms and Stochastic Approximations. Springer-Verlag, Berlin.
7. Bertsekas, D. 1999. Nonlinear Programming, 2nd ed. Athena Scientific, Nashua, NH.
8. Bertsimas, D., S. de Boer. 2005. Simulation-based booking-limits for airline revenue management. Oper. Res. 53 90-106.
9. Billingsley, P. 1995. Probability and Measure. John Wiley & Sons, New York.
10. Brumelle, S., J. McGill. 1993. Airline seat allocation with multiple nested fare classes. Oper. Res. 41 127-137.
11. Curry, R. 1990. Optimal airline seat allocation with fare classes nested by origins and destinations. Transportation Sci. 24 193-204.
12. de Boer, S. 2003. Personal communication.
13. Dror, M., P. Trudeau, S. Ladany. 1988. Network models for seat allocation on flights. Transportation Res. 22B 239-250.
14. Ermoliev, Y. 1988. Stochastic quasigradient for methods. Y Ermoliev, R. J.-B. Wets, eds. Numerical Techniques Stochastic Optimization, Chapter 6. Springer-Verlag, Berlin, 143-185.
15. Gaivoronski, A. 2005. SQG: Software for solving stochastic programming problems with stochastic quasigradient methods. S. Wallace, W. Ziemba, eds. Applications of Stochastic Programming. MPS/SIAM Series in Optimization, SIAM, Philadelphia, 37-60.
16. Glasserman, P. 1994. Perturbation analysis of production networks. D. D. Yao, ed. Stochastic. Modeling and Analysis of Manufacturing Systems, Chapter 6. Springer, New York, 233-280.
17. Glover, F., R. Glover, J. Lorenzo, C. McMillan. 1982. The passenger mix problem in the scheduled airlines. Interfaces 12 72-79.
18. Gu, Z. 2002. Quadratic programming and mixed integer quadratic programming: Algorithms and implementation. Presented at Second Columbia Optimization. Day. Columbia University, New York.
19. Karaesmen, I., G. J. van Ryzin. 2004. Overbooking with substitutable inventory classes. Oper. Res. 52 83-104.
20. Kleywegt, A. J., A. Shapiro. 2001. Stochastic optimization. G. Salvendy, ed. The Handbook of Industrial Engineering, 3rd ed. John Wiley & Sons, New York, 2625-2650.
21. Kushner, H. J., D. S. Clark. 1978. Stochastic Approximation Methods for Constrained and Unconstrained Systems. Springer-Verlag, Berlin.
22. Kushner, H. J., G. Yin. 2003. Stochastic Approximation and Recursive Algorithms and Applications. Springer-Verlag, New York.
23. L'Ecuyer, P., P. Glynn. 1994. Stochastic optimization by simulation: Convergence proofs for the GI/G/1 queue in steady state. Management Sci. 40 1562-1578.
24. L'Ecuyer, P., N. Giroux, P. Glynn. 1994. Stochastic optimization by simulation: Numerical experiments with the M/M/1 queue in steady state. Management Sci. 40 1245-1261.
25. Lee, T., M. Hersh. 1993. A model for dynamic airline seat inventory control with multiple seat bookings. Transportation Sci. 27 252-265.
26. Lemaréchal, C. 1989. Nondifferentiable optimization. G. Nemhauser, A. Rinnooy Kan, M. Todd, eds. Handbooks in OR & MS, Vol. 1, Chapter VII. Elsevier Science Publishers, 529-572.
27. Littlewood, K. 1972. Forecasting and control of passengers bookings. 12th AGIFORS Sympos. Proc., Nathanya, Israel, 95-128.
28. Mahajan, S., G. van Ryzin. 2001. Stocking retail assortments under dynamic consumer substitution. Oper. Res. 49 334-351.
29. Pflug, G. 1988. Step size rules, stopping times and their implementation in stochastic quasigradient methods. Y. Ermoliev, R. J.-B. Wets, eds. Numerical Techniques for Stochastic Optimization, Chapter 17. Springer-Verlag, Berlin, 353-372.
30. Plambeck, E. L., B. Fu, S. M. Robinson, R. Suri. 1996. Sample-path optimization of convex stochastic performance functions. Math. Programming 75 137-176.
31. Robbins, H., S. Monro. 195.1. On a stochastic approximation method. Ann. Math. Statist. 22 400-407.
32. Ross, S. M. 1996. Stochastic Processes, 2nd ed. John Wiley & Sons, New York.
33. Shapiro, A. 2000. Stochastic programming by Monte Carlo simulation methods. Stochastic Programming E-Prints Series, article 2000-2003.
34. Smith, B., C. Penn. 1988. Analysis of alternative origin-destination control strategies. AGIFORS Sympos. Proc., Vol. 28. New Seabury, MA, 123-144.
35. Smith, B., J. Leimkuhler, R. Darrow. 1992. Yield management at American Airlines. Interfaces 22 8-31.
36. Talluri, K., G. J. van Ryzin. 2004. The Theory and Practice of Revenue Management. Kluwer Academic Publishers, New York.
37. van Ryzin, G., G. Vulcano. 2008. Computing virtual nesting controls for network revenue management under customer choice behavior. Manufacturing Service Oper: Management 10(3) 448-467.
38. Williamson, E. 1992. Airline network seat inventory control: Methodologies and revenue impacts. Ph.D. thesis, Flight Transportation Laboratory, Massachusetts Institute of Technology, Cambridge, MA.
39. Wolfe, P. 1959. The simplex method for quadratic programming. Econometrics 37 382-398.