Abstract
In this paper, we consider a single-leg, single-departure period sea cargo revenue management problem. Since demand is uncertain, the carrier practices overbooking to better utilise capacity in which the overlooking quantity is fixed based on past experience and historical data. Booking requests arrive in a given time window before ship departure. The problem is to determine whether to accept a booking request upon its arrival so as to maximise the total expected profit subject to the limited capacity. To this end, a two-phase scenario-based heuristic is developed for real-time application. This heuristic is intuitive, fast, and easy to understand and implement. The major advantage of the proposed heuristic is that the development is simple enough such that a college graduate with basic knowledge on management science can understand, implement, and maintain. By computational experiment, we find that the heuristic is robust and delivers solutions with consistently high effectiveness.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: World Review of Intermodal Transportation Research
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
