An Overbooking Model for Air Cargo Industry under Stochastic Booking Request and Show-Up Rate

Anupong Wannakrairot; Naragain Phumchusri

doi:10.4028/www.scientific.net/AMM.799-800.1393

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HomeApplied Mechanics and MaterialsApplied Mechanics and Materials Vols. 799-800An Overbooking Model for Air Cargo Industry under...

An Overbooking Model for Air Cargo Industry under Stochastic Booking Request and Show-Up Rate

Abstract:

Overbooking is a technique which sells goods or services in excess of the available capacity because there is a possibility that some customers might not show up. In air cargo overbooking problem, overbooking model is more complex because of the two-dimensional characteristic. This paper presents a two-dimensional air cargo overbooking model to find the optimal overbooking level in order to minimize the total cost, which consists of spoilage and offloading costs. Booking requests and show-up rate are random variables with known distributions. Sensitivity analysis is used to observe the impact of the ratio between spoilage and offloading costs on the optimal overbooking level.

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Periodical:

Applied Mechanics and Materials (Volumes 799-800)

Pages:

1393-1397

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.799-800.1393

Citation:

Cite this paper

Online since:

October 2015

Authors:

Anupong Wannakrairot*, Naragain Phumchusri

Keywords:

Air Cargo, Offloading Cost, Optimal Overbooking Level, Overbooking, Revenue Management, Spoilage Cost

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References

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