IDEAS home Printed from https://ideas.repec.org/h/spr/oprchp/978-3-319-00795-3_59.html
   My bibliography  Save this book chapter

Capacity Allocation and Pricing for Take-or-Pay Reservation Contracts

In: Operations Research Proceedings 2012

Author

Listed:
  • Mehdi Sharifyazdi

    (Chalmers University of Technology and University of Gothenburg)

  • Hoda Davarzani

    (Lund University)

Abstract

This paper uses a bi-level optimization model to formulate a specific type of capacity reservation contracts, namely take-or-pay contracts, where a buyer reserves a portion of a supplier’s capacity before demand is realized with discounted price. At first, we formulate the lower-level problem and solve a non-linear optimization model where a buyer decides on the amount of capacity to be reserved given the discounted and normal unit capacity price, demand probability distribution and maximum available capacity. Afterwards, we construct the upper-level model where there are a supplier and multiple buyers and the supplier must choose the discounted price and maximum available capacity for each of the buyers. Enforced by the behaviour of the model, we create a bi-level real-valued genetic algorithm to find good solutions for the model.

Suggested Citation

  • Mehdi Sharifyazdi & Hoda Davarzani, 2014. "Capacity Allocation and Pricing for Take-or-Pay Reservation Contracts," Operations Research Proceedings, in: Stefan Helber & Michael Breitner & Daniel Rösch & Cornelia Schön & Johann-Matthias Graf von der Schu (ed.), Operations Research Proceedings 2012, edition 127, pages 395-400, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-00795-3_59
    DOI: 10.1007/978-3-319-00795-3_59
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:oprchp:978-3-319-00795-3_59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.