Journal of Guangxi Normal University(Natural Science Edition) ›› 2013, Vol. 31 ›› Issue (2): 27-33.

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Seat Inventory Control for Flights Based on Risk-aversion

LE Mei-long1, ZHANG Jian-ze2   

  1. 1.Scientific Research Academy,Shanghai Maritime University,Shanghai 201306,China;
    2.Logistics Research Center,Shanghai Maritime University,Shanghai 201306,China
  • Received:2012-12-27 Online:2013-06-20 Published:2018-11-26

Abstract: The seat allocation control problem is considered by the view of risk-aversion.Seat inventory control based on risk aversion can give a better description of the uncertainty of revenue.The risk aversion parameter is introduced for risk measurement in this paper,whichrepresents the variance of revenue,to formulate the single-leg and multi-legmodels respectively.Through simulation analysis,the numbers of the seat allocation,expected revenue and variance of revenue for single-leg and multi-leg models are obtained under different risk aversion parameters.Then the impact of the change of parameters on expected revenue and seat allocation is analyzed.Comparing the computational result of the both models,the simulation shows the effectiveness and innovativeness of the proposed model in this paper.

Key words: airline revenue management, seat inventory control, risk-aversion, linear programming

CLC Number: 

  • F560.5
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