Revenue management policies for the truck rental industry

Guerriero, Francesca; Miglionico, Giovanna; Olivito, Filomena

doi:10.1016/j.tre.2011.07.006

Cited by 14 publications

(12 citation statements)

References 9 publications

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“…Interesting reviews on revenue management features, techniques and sectors of application can be found in [11,23]. Recent papers applying revenue management policies to less conventional industries are [5,17,18].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The objective function (12) minimizes the total routing cost, while constraints ( 13) and ( 14) guarantee that an arc enters and an arc leaves from each node which is visited. Constraints (15) ensure that each node is visited at most once, constraint ( 16) limits the number of routes (i.e., vehicles) to be at most K, and constraints (17) impose that the solution is connected, with constraints ( 21), (22), and ( 23) representing variables definitions. The side constraints (18) to (20) concern the fulfillment of the requests.…”

Section: Capacity Control For Distribution Logistics Problemsmentioning

confidence: 99%

“…Revenue management (RM) techniques, originally developed in the airline industry in 1970s [3], with the aim of efficiently allocating fixed resource capacity to different classes of customers, have rapidly spread throughout other sectors of application, such as transportation [5,17], hotels [16,20], and restaurants [18].…”

Section: Introductionmentioning

confidence: 99%

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Profit maximization via capacity control for distribution logistics problems

Giallombardo¹,

Guerriero²,

Miglionico³

2020

Preprint

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We consider a distribution logistics scenario where a shipping operator, managing a limited amount of resources, receives a stream of collection requests, issued by a set of customers along a booking time-horizon, that are referred to a future operational period. The shipping operator must then decide about accepting or rejecting each incoming request at the time it is issued, accounting for revenues, but also considering resource consumptions. In this context, the decision process is based on dynamically finding the best trade-off between the immediate return of accepting the request and the convenience of preserving capacity to possibly exploit more valuable future requests. We give a dynamic formulation of the problem aimed at maximizing the operator revenues, accounting also for the operational distribution costs. Due to the "curse of dimensionality", the dynamic program cannot be solved optimally. For this reason, we propose a mixed-integer linear programming approximation, whose exact or approximate solutions provide the relevant information to apply some commonplace revenue management policies in the real-time decision-making. Adopting a capacitated vehicle routing problem as an underlying distribution application, we analyze the computational behaviour of the proposed techniques on a set of academic

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Section: Literature Reviewmentioning

confidence: 99%

Section: Capacity Control For Distribution Logistics Problemsmentioning

confidence: 99%

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Profit maximization via capacity control for distribution logistics problems

Giallombardo¹,

Guerriero²,

Miglionico³

2020

Preprint

Self Cite

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“…It is also important to consider that these connections between revenue management issues and operational/eet management issues are present in other industries as well. For example , Guerriero et al (2012) address the problem of accepting/rejecting requests for a eet of trucks of a logistics operator, which is seen as a capacity control revenue management problem, considering as well the operational/eet management problem of empty repositioning trucks between locations.…”

Section: Overview On the Discussed Problemsmentioning

confidence: 99%

Fleet and revenue management in car rental companies: A literature review and an integrated conceptual framework

Oliveira

Carravilla

Oliveira

2017

Omega

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This paper aims to present, dene and structure the car rental eet management problem, which includes operational eet management issues and problems traditionally studied under the revenue management framework. The car rental business has challenging and distinctive characteristics, which are mainly related with eet and decision-making exibility, and that render this problem relevant for academic research and practical applications. Three main contributions are presented: an in-depth literature review and discussion on car rental eet and revenue management issues, a novel integrating conceptual framework for this problem, and the identication of research directions for the future development of the eld.

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“…The third one is pricing, i.e., determining the optimal price to charge the customers. Revenue management has also been applied to freight transportation systems such as air cargo transportation (e.g., Huang and Chang, 2010;Zou et al, 2013) and trucking (e.g., Guerriero et al, 2012).…”

Section: Research On Revenue Managementmentioning

confidence: 99%