Broadly defined, revenue management (RM) is the process of maximizing revenue from a fixed amount of perishable inventory using “market segmentation” and “demand management” techniques. While RM is not new (in fact it is as old as commerce, e.g., haggling in a market can be considered a form of RM), the theory and practice of RM have seen significant scientific and practical advances in the las...

In this paper, we consider the problem of managing a fleet of trucks with different capacity to serve the requests of different customers that arise randomly over time. Customers make a request by demanding the transportation of a given quantity of goods from an origin to a destination, at a given time. It is well known that these problems arise in the dynamic resource allocation context, where...

Consider a risk-averse decision maker in the setting of a single-leg dynamic revenue management problem with revenue controlled by limiting capacity for a fixed set of prices. Instead of focussing on maximizing the expected revenue, the decision maker has the main objective of minimizing the risk of failing to achieve a given target revenue. Interpreting the revenue management problem in the fr...

The railway industry offers similar revenue management opportunities to those found in the airline industry. The railway industry caters for the delivery and management of cargo as well as the transport of passengers. Unlike the airline industry, the railway industry has seen relatively little attention to revenue management problems. We provide an overview of the published literature for both ...

Consider a risk-averse decision maker in the setting of a single-leg dynamic revenue management problem with revenue controlled by limiting capacity for a fixed set of prices. Instead of focussing on maximising the expected revenue, the decision maker has the main objective of minimising the risk of failing to achieve a given target revenue. Interpreting the revenue management problem in the fr...

Consider a risk-averse decision maker in the setting of a single-leg dynamic revenue management problem with revenue controlled by limiting capacity for a fixed set of prices. Instead of focussing on maximising the expected revenue, the decision maker has the main objective of minimising the risk of failing to achieve a given target revenue. Interpreting the revenue management problem in the fr...

A product is a unit of capacity sold to self-selected low-fare customers who willingly grant the capacity provider the option to “call” the capacity at a prespecified recall price. We analyze callable products in a finite-capacity setting with two fare classes where low-fare customers book first, and show that callable products provide a riskless source of additional revenue to the capacity pro...

this paper focuses on formulating capacity-price trade off problem in yield management for manufactur-ing industry by drawing motivation from the remarkable success of yield management (ym) implementation in airlines. in the current practice, there is no alternative and procedure for the manufacturer, as well as cus-tomers to take advantage of using the unfulfilled capacity in discounted offers...

Excerpt] Revenue management (RM) has been practiced in the airline (Smith, Leimkuhler,& Darrow, 1992),hotel (Hanks, Noland, & Cross, 1992),and car rental industries (Carroll & Grimes, 1995; Geraghty & Johnson, 1997) for over 15 years, and has more recently attracted attention in other industries, including broadcasting, golf (Kimes, 2000), health care (Born et al., 2004), and restaurants (Kimes...