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Revenue maximisation in networks with capacity constraints

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  • J.Q. Hu
  • Pirooz Vakili
  • Chenming Zhao
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    Abstract

    In this article, we study the revenue maximisation problem for a given network subject to various capacity constraints. Though the problem in general can be formulated as an integer linear programming (ILP) problem, it is computationally infeasible to solve the ILP problem for large networks. We propose several approximate methods. Our methods are mainly based on two steps. First, we order the traffic demands in certain sequence based on their priority indices, and we then route the demands one by one based on their order sequence subject to capacity constraints. Numerical results are provided to validate our methods.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Revenue Management.

    Volume (Year): 3 (2009)
    Issue (Month): 4 ()
    Pages: 371-392

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    Handle: RePEc:ids:ijrevm:v:3:y:2009:i:4:p:371-392

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    Web page: http://www.inderscience.com/browse/index.php?journalID=99

    Related research

    Keywords: revenue maximisation; networks; capacity constraints; ILP; integer linear programming; shortest path; revenue management.;

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