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A Fuel Management Model for the Airline Industry

Author

Listed:
  • John S. Stroup

    (Douglas Aircraft Company, McDonnell Douglas Corporation, Long Beach, California)

  • Richard D. Wollmer

    (Douglas Aircraft Company and California State University, Long Beach, California)

Abstract

This model finds a minimum cost fuel tankering policy for an airline flight schedule based on fuel prices, station constraints and supplier constraints. A station constraint is an upper or lower bound on the amount of fuel that may be purchased at a particular station for all flights. A supplier constraint is an upper or lower bound on the amount of fuel that may be purchased from a particular supplier at all stations. The problem formulates as a linear program. However, if there are no station or supplier constraints it can be reduced to a pure network problem by a series of transformations on the constraints and variables. If there are either station or supplier constraints, but not both, it can be reduced to a generalized network problem. If both are present, the program is not a generalized network. However, the number of supplier constraints is likely to be small. When this is the case, other techniques may be used to decrease computation time. McDonnell Douglas uses this model to estimate the profit potential of various aircraft types under optimal fuel management policies. Cost savings of 5 to 6% are common.

Suggested Citation

  • John S. Stroup & Richard D. Wollmer, 1992. "A Fuel Management Model for the Airline Industry," Operations Research, INFORMS, vol. 40(2), pages 229-237, April.
    • Handle: RePEc:inm:oropre:v:40:y:1992:i:2:p:229-237
    DOI: 10.1287/opre.40.2.229
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    Citations

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    Cited by:

    1. 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.
    2. V. Prem Kumar & Michel Bierlaire, 2015. "Optimizing Fueling Decisions for Locomotives in Railroad Networks," Transportation Science, INFORMS, vol. 49(1), pages 149-159, February.
    3. Omar Besbes & Sergei Savin, 2009. "Going Bunkers: The Joint Route Selection and Refueling Problem," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 694-711, February.
    4. 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.
    5. Suzuki, Yoshinori & Lan, Bo, 2018. "Cutting fuel consumption of truckload carriers by using new enhanced refueling policies," International Journal of Production Economics, Elsevier, vol. 202(C), pages 69-80.
    6. Elsie Sterbin Gottlieb, 2002. "Solving generalized transportation problems via pure transportation problems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 49(7), pages 666-685, October.
    7. Abdelghany, Khaled & Abdelghany, Ahmed & Raina, Sidhartha, 2005. "A model for the airlines’ fuel management strategies," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 199-206.

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