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Revenue maximisation in networks with capacity constraints

Author

Listed:
  • J.Q. Hu
  • Pirooz Vakili
  • Chenming Zhao

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.

Suggested Citation

  • J.Q. Hu & Pirooz Vakili & Chenming Zhao, 2009. "Revenue maximisation in networks with capacity constraints," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 3(4), pages 371-392.
  • Handle: RePEc:ids:ijrevm:v:3:y:2009:i:4:p:371-392
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