Sea cargo revenue management: a scenario-based approach for order acceptance decision
by Chi-Leung Chu; Vincent C. Li
World Review of Intermodal Transportation Research (WRITR), Vol. 9, No. 2, 2020

Abstract: In this paper, we consider a single-leg, single-departure period sea cargo revenue management problem. Since demand is uncertain, the carrier practices overbooking to better utilise capacity in which the overlooking quantity is fixed based on past experience and historical data. Booking requests arrive in a given time window before ship departure. The problem is to determine whether to accept a booking request upon its arrival so as to maximise the total expected profit subject to the limited capacity. To this end, a two-phase scenario-based heuristic is developed for real-time application. This heuristic is intuitive, fast, and easy to understand and implement. The major advantage of the proposed heuristic is that the development is simple enough such that a college graduate with basic knowledge on management science can understand, implement, and maintain. By computational experiment, we find that the heuristic is robust and delivers solutions with consistently high effectiveness.

Online publication date: Mon, 27-Apr-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the World Review of Intermodal Transportation Research (WRITR):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com