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An Optimization Model of the Single‐Leg Air Cargo Space Control Based on Markov Decision Process

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  • Chun-rong Qin
  • Li Luo
  • Yang You
  • Yong-xi Xiao

Abstract

Based on the single‐leg air cargo issues, we establish a dynamic programming model to consider the overbooking and space inventory control problem. We analyze the structure of optimal booking policy for every kind of booking requests and show that the optimal booking decision is of threshold type (known as booking limit policy). Our research provides a theoretical support for the air cargo space control.

Suggested Citation

  • Chun-rong Qin & Li Luo & Yang You & Yong-xi Xiao, 2012. "An Optimization Model of the Single‐Leg Air Cargo Space Control Based on Markov Decision Process," Journal of Applied Mathematics, John Wiley & Sons, vol. 2012(1).
    • Handle: RePEc:wly:jnljam:v:2012:y:2012:i:1:n:235706
    DOI: 10.1155/2012/235706
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    References listed on IDEAS

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    1. Anton J. Kleywegt & Jason D. Papastavrou, 1998. "The Dynamic and Stochastic Knapsack Problem," Operations Research, INFORMS, vol. 46(1), pages 17-35, February.
    2. Yuri Levin & Mikhail Nediak & Huseyin Topaloglu, 2012. "Cargo Capacity Management with Allotments and Spot Market Demand," Operations Research, INFORMS, vol. 60(2), pages 351-365, April.
    3. Rivi Sandhu & Diego Klabjan, 2006. "Fleeting with Passenger and Cargo Origin-Destination Booking Control," Transportation Science, INFORMS, vol. 40(4), pages 517-528, November.
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    Cited by:

    1. Srinivasan, Dhandabani & Amit, R.K. & Malik, Atul Kumar & Goh, Shao Hung, 2026. "Approximate dynamic programming-based thresholds for cargo capacity management considering postponements," Omega, Elsevier, vol. 138(C).

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