Article
Transportation
Guihong Zhao, Yue Cui, Shaoyu Cheng
Summary: This paper presents a dynamic pricing mechanism for ancillary services based on passenger choice behavior, with optimal prices derived from an analysis of historical data on a Chinese domestic flight, resulting in a 74.4% increase in revenue. The model not only provides a general pricing framework for enhancing ancillary revenue, but also offers theoretical support for ancillary pricing and can be dynamically applied to various flights and services.
JOURNAL OF AIR TRANSPORT MANAGEMENT
(2021)
Article
Management
Will Ma, David Simchi-Levi, Chung-Piaw Teo
Summary: This paper discusses the single-item revenue management problem and addresses the challenges of dynamic pricing, demonstrating that the same competitive ratio can be achieved through a randomized dynamic pricing policy. The policy incorporates price-skimming techniques and utilizes a Valuation Tracking subroutine to maintain the desired competitive ratio.
OPERATIONS RESEARCH
(2021)
Article
Management
Boqian Song, Michael Z. F. Li, Weifen Zhuang
Summary: This study examines the impact of dynamic channel control and pricing on the distribution of a single perishable product through multiple channels, using stylized linear functions and two types of commissions to analyze dependent demand flows from different channels. It is found that the magnitude of the opportunity cost of capacity uniquely determines the optimal channel control strategy and pricing decisions.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Management
Gregory DeCroix, Xiaoyang Long, Jordan Tong
Summary: The study shows that quality variability reduces firm revenues and leads to a downward bias in customer beliefs about quality. Through dynamic personalized pricing strategies, firms can mitigate the negative effects of quality variability. The research also indicates that significant revenue gains can be achieved through dynamic pricing, especially when quality variability is large, customers react strongly to recent experiences, and/or mean service quality is high.
OPERATIONS RESEARCH
(2021)
Article
Management
Woonghee Tim Huh, Hongmin Li
Summary: The study examines a utility-based customer-choice model where customers may purchase multiple products. It analyzes the firm's optimal pricing problem and shows that the optimal solution is ordered based on a price-independent index. The study also extends to consider a stochastic model that accounts for customer heterogeneity.
OPERATIONS RESEARCH
(2022)
Article
Business
Graziano Abrate, Ruggero Sainaghi, Aurelio G. Mauri
Summary: The study explores the impact of professionalization level of Airbnb hosts on pricing strategies and listing performance. Findings suggest that both listing performance and price variability tend to increase with the degree of professionalization, while the effect of price variability on performance remains consistent regardless of the number of listings. Time-varying pricing is considered an important and relatively accessible strategy for hosts of all professional levels.
JOURNAL OF BUSINESS RESEARCH
(2022)
Article
Operations Research & Management Science
Zihao Zhang, Liuyi Ling, Feng Yang
Summary: Flight crowdfunding is beneficial for airlines by reducing expected costs and introducing buyer uncertainty in a competitive market. The optimal threshold is found to be lower than the indifferent point. Interestingly, crowdfunding may increase equilibrium prices in a monopoly market, but it can still improve airlines' profits and benefit social welfare by reducing greenhouse gas emissions.
NAVAL RESEARCH LOGISTICS
(2021)
Article
Engineering, Manufacturing
Yan Liu, Ningyuan Chen
Summary: The study suggests that for products that can be returned instantly, the optimal MBG policy is a simple threshold policy, with the threshold decreasing with inventory level. Additionally, the complexity of dynamic pricing and positive return times is analyzed, and deterministic solutions are found to be asymptotically optimal for stochastic systems.
PRODUCTION AND OPERATIONS MANAGEMENT
(2022)
Article
Engineering, Electrical & Electronic
William Seward, Meysam Qadrdan, Nick Jenkins
Summary: This study presents a linear optimization approach to account for the participation of battery storage systems in the wholesale day-ahead electricity market and multiple frequency response services. The results show that local energy systems can decrease their operating costs and improve the viability of battery storage investment by stacking multiple revenues, while reducing degradation and increasing lifetime.
ELECTRIC POWER SYSTEMS RESEARCH
(2022)
Review
Transportation Science & Technology
Maja Ozmec-Ban, Ruzica Skurla Babic, Andrija Vidovic, Matija Bracic
Summary: Passengers can choose from a set of ancillary services to enhance their travel experience, which has become a trend in the air transport industry. The provision of ancillary services allows airlines to increase additional revenue and remain competitive in the fiercely competitive industry.
PROMET-TRAFFIC & TRANSPORTATION
(2022)
Article
Computer Science, Interdisciplinary Applications
Yang Yang, Wan -Ling Chu, Cheng-Hung Wu
Summary: This research proposes a revenue management framework for perishable products, which can quickly learn customer preferences before the selling season begins and generate optimal pricing decisions. The numerical study shows that the revenue difference caused by unknown preferences is small compared to the known preferences.
COMPUTERS & INDUSTRIAL ENGINEERING
(2022)
Article
Economics
Wenwei Zhang, Min Xu, Shuaian Wang
Summary: This study proposes a comprehensive modeling and optimization framework for the joint self-service station location and service price optimization problem. It aims to reduce the vehicle routing cost of the dedicated fleet by shifting customers from home-delivery service to cost-effective self-service.
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
(2023)
Article
Operations Research & Management Science
Renato de Matta, Timothy J. Lowe
Summary: Empirical studies have shown that sellers with better customer feedback scores can charge higher prices. This study builds a system model to analyze the processes of customer arrival and reservation price formation, customer feedback collection and aggregation into a Seller Service Rating (SSR), and determining the optimal pricing strategy. It uses a simulation-optimization approach to overcome technical difficulties in finding analytical solutions.
ANNALS OF OPERATIONS RESEARCH
(2023)
Article
Management
Hakjin Chung, Hyun-Soo Ahn, So Yeon Chun
Summary: This study examines the impact of point redemption on seller's pricing and inventory decisions. The results show that point redemption can significantly affect pricing and reduce price fluctuations caused by dynamic pricing policies. Implementing discretionary policies can greatly increase the seller's revenue.
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2022)
Article
Green & Sustainable Science & Technology
Yaqin Lin, Chun-Hung Chiu
Summary: To improve carbon reduction efficiency, green hotels adopt cash discount incentives to encourage green customer behavior. However, the effectiveness of these incentives in promoting green customer behavior has been controversial. This study investigates the impacts of customer-perceived experience sacrifice on the effectiveness of cash discount incentives using mathematical modeling.
Review
Management
Vinicius N. Motta, Miguel F. Anjos, Michel Gendreau
Summary: This survey presents a review of optimization approaches for the integration of demand response in power systems planning and highlights important future research directions.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Philipp Schulze, Armin Scholl, Rico Walter
Summary: This paper proposes an improved branch-and-bound algorithm, R-SALSA, for solving the simple assembly line balancing problem, which performs well in balancing workloads and providing initial solutions.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Roshan Mahes, Michel Mandjes, Marko Boon, Peter Taylor
Summary: This paper discusses appointment scheduling and presents a phase-type-based approach to handle variations in service times. Numerical experiments with dynamic scheduling demonstrate the benefits of rescheduling.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Oleg S. Pianykh, Sebastian Perez, Chengzhao Richard Zhang
Summary: Efficient scheduling is crucial for optimizing resource allocation and system performance. This study focuses on critical utilization and efficient scheduling in discrete scheduling systems, and compares the results with classical queueing theory.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Review
Management
Hamed Jahani, Babak Abbasi, Jiuh-Biing Sheu, Walid Klibi
Summary: Supply chain network design is a large and growing area of research. This study comprehensively surveys and analyzes articles published from 2008 to 2021 to detect and report financial perspectives in SCND models. The study also identifies research gaps and offers future research directions.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Patrick Healy, Nicolas Jozefowiez, Pierre Laroche, Franc Marchetti, Sebastien Martin, Zsuzsanna Roka
Summary: The Connected Max-k-Cut Problem is an extension of the well-known Max-Cut Problem, where the objective is to partition a graph into k connected subgraphs by maximizing the cost of inter-partition edges. The researchers propose a new integer linear program and a branch-and-cut algorithm for this problem, and also use graph isomorphism to structure the instances and facilitate their resolution. Extensive computational experiments show that, if k > 2, their approach outperforms existing algorithms in terms of quality.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Victor J. Espana, Juan Aparicio, Xavier Barber, Miriam Esteve
Summary: This paper introduces a new methodology based on the machine learning technique MARS for estimating production functions that satisfy classical production theory axioms. The new approach overcomes the overfitting problem of DEA through generalized cross-validation and demonstrates better performance in reducing mean squared error and bias compared to DEA and C2NLS methods.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Stefano Nasini, Rabia Nessah
Summary: In this paper, the authors investigate the impact of time flexibility in job scheduling, showing that it can significantly affect operators' ability to solve the problem efficiently. They propose a new methodology based on convex quadratic programming approaches that allows for optimal solutions in large-scale instances.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Zhiqiang Liao, Sheng Dai, Timo Kuosmanen
Summary: Nonparametric regression subject to convexity or concavity constraints is gaining popularity in various fields. The conventional convex regression method often suffers from overfitting and outliers. This paper proposes the convex support vector regression method to address these issues and demonstrates its advantages in prediction accuracy and robustness through numerical experiments.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Kuo-Hao Chang, Ying-Zheng Wu, Wen-Ray Su, Lee-Yaw Lin
Summary: The damage and destruction caused by earthquakes necessitates the evacuation of affected populations. Simulation models, such as the Stochastic Pedestrian Cell Transmission Model (SPCTM), can be utilized to enhance disaster and evacuation management. The analysis of SPCTM provides insights for government officials to formulate effective evacuation strategies.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Qinghua Wu, Mu He, Jin-Kao Hao, Yongliang Lu
Summary: This paper studies a variant of the orienteering problem known as the clustered orienteering problem. In this problem, customers are grouped into clusters and a profit is associated with each cluster, collected only when all customers in the cluster are served. The proposed evolutionary algorithm, incorporating a backbone-based crossover operator and a destroy-and-repair mutation operator, outperforms existing algorithms on benchmark instances and sets new records on some instances. It also demonstrates scalability on large instances and has shown superiority over three state-of-the-art COP algorithms. The algorithm is also successfully applied to a dynamic version of the COP considering stochastic travel time.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Bjorn Bokelmann, Stefan Lessmann
Summary: Estimating treatment effects is an important task for data analysts, and uplift models provide support for efficient allocation of treatments. However, evaluating uplift models is challenging due to variance issues. This paper theoretically analyzes the variance of uplift evaluation metrics, proposes variance reduction methods based on statistical adjustment, and demonstrates their benefits on simulated and real-world data.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Congzheng Liu, Wenqi Zhu
Summary: This paper proposes a feature-based non-parametric approach to minimizing the conditional value-at-risk in the newsvendor problem. The method is able to handle both linear and nonlinear profits without prior knowledge of the demand distribution. Results from numerical and real-life experiments demonstrate the robustness and effectiveness of the approach.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Laszlo Csato
Summary: This paper compares the performance of the eigenvalue method and the row geometric mean as two weighting procedures. Through numerical experiments, it is found that the priorities derived from the two eigenvectors in the eigenvalue method do not always agree, while the row geometric mean serves as a compromise between them.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)
Article
Management
Guowei Dou, Tsan-Ming Choi
Summary: This study investigates the impact of channel relationships between manufacturers on government policies and explores the effectiveness of positive incentives versus taxes in increasing social welfare. The findings suggest that competition may be more effective in improving sustainability and social welfare. Additionally, government incentives for green technology may not necessarily enhance sustainability.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2024)