4.7 Article

Stochastic seat allocation models for passenger rail transportation under customer choice

Publisher

PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2016.10.003

Keywords

Passenger rail; Revenue management; Passenger choice behavior; Seat allocation; Monte-Carlo simulation; Stochastic programming

Funding

  1. National Natural Science Foundation Council of China [71601142]
  2. Program of the Fundamental Research Funds for the Central Universities [10247201601164]
  3. Program of the Excellent Young Scholar Funds of Tongji University - China [2015KJ019]

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We study the seat allocation problem for passenger rail revenue management, in which a rail operator attempts to determine the optimal quantity of seats to be allocated to each cabin class for each train service. We formulate the problem with single-stage and multi-stage decisions as two stochastic programming models that incorporate passengers' choice behavior. We transform the stochastic models into equivalent deterministic mathematical programs that are easy to solve. Then, we form a variety of seat allocation polices from the optimal solutions to the seat allocation models. A number of simulation tests are offered to test the policies. (C) 2016 Elsevier Ltd. All rights reserved.

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