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A multiple period capacitated inventory model for airline fuel management: a case study

Author

Listed:
  • P P Zouein

    (Lebanese American University)

  • W R Abillama

    (Middle East Airlines)

  • E Tohme

    (Lebanese American University)

Abstract

One of the major operating cost items of an airline company is fuel, which can amount to approximately 20% of its overall operating cost. This paper presents a decision support model that determines the amount of fuel to be uplifted by a plane at each station along its route over a predetermined planning horizon so as to minimise overall fuel costs. The aforementioned fuel management problem is modelled as a multiple period capacitated inventory problem and solved using linear programming. An example application illustrates the applicability of this model to Middle East Airline's (MEA) operations and summarises the dollar savings obtained by applying it over a one week planning horizon.

Suggested Citation

  • P P Zouein & W R Abillama & E Tohme, 2002. "A multiple period capacitated inventory model for airline fuel management: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(4), pages 379-386, April.
    • Handle: RePEc:pal:jorsoc:v:53:y:2002:i:4:d:10.1057_palgrave.jors.2601315
    DOI: 10.1057/palgrave.jors.2601315
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    Citations

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    Cited by:

    1. Nourbakhsh, Seyed Mohammad & Ouyang, Yanfeng, 2010. "Optimal fueling strategies for locomotive fleets in railroad networks," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 1104-1114, September.
    2. Siyang Xie & Xi Chen & Zhaodong Wang & Yanfeng Ouyang & Kamalesh Somani & Jing Huang, 2016. "Integrated Planning for Multiple Types of Locomotive Work Facilities Under Location, Routing, and Inventory Considerations," Interfaces, INFORMS, vol. 46(5), pages 391-408, October.
    3. Kazemi, Ahmad & Ernst, Andreas T. & Krishnamoorthy, Mohan & Le Bodic, Pierre, 2021. "Locomotive fuel management with inline refueling," European Journal of Operational Research, Elsevier, vol. 293(3), pages 1077-1096.
    4. Yılmaz, Seren Bilge & Yücel, Eda, 2021. "Optimizing onboard catering loading locations and plans for airlines," Omega, Elsevier, vol. 99(C).
    5. V. Prem Kumar & Michel Bierlaire, 2015. "Optimizing Fueling Decisions for Locomotives in Railroad Networks," Transportation Science, INFORMS, vol. 49(1), pages 149-159, February.
    6. Ma, Qiuzhuo & Song, Haiqing & Zhu, Wenbin, 2018. "Low-carbon airline fleet assignment: A compromise approach," Journal of Air Transport Management, Elsevier, vol. 68(C), pages 86-102.
    7. David Schindl & Nicolas Zufferey, 2015. "A learning tabu search for a truck allocation problem with linear and nonlinear cost components," Naval Research Logistics (NRL), John Wiley & Sons, vol. 62(1), pages 32-45, February.

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