In this paper, we address the problem of a car rental agency, that is confronted with how to decide to accept or reject a booking request, in order to optimize the revenue. To mathematically formulate the problem at hand an innovative integer programming model is devised, which incorporates particularities of the car rental business, like multi-day rents and non-cascading upgrades. To capture the randomness of the unknown demand, several robustness measures are applied and the related scenario-based formulations are presented. In order to assess the performance of the proposed models, in terms of efficacy and efficiency, an extensive computational study is carried out, by considering a set of randomly generated instances. The collected computational results are extremely interesting and show the relation between problem size and computation time and the effect of risk-aversion on revenue.
Modeling and Solving a Car Rental Revenue Optimization Problem
GUERRIERO, Francesca;
2011-01-01
Abstract
In this paper, we address the problem of a car rental agency, that is confronted with how to decide to accept or reject a booking request, in order to optimize the revenue. To mathematically formulate the problem at hand an innovative integer programming model is devised, which incorporates particularities of the car rental business, like multi-day rents and non-cascading upgrades. To capture the randomness of the unknown demand, several robustness measures are applied and the related scenario-based formulations are presented. In order to assess the performance of the proposed models, in terms of efficacy and efficiency, an extensive computational study is carried out, by considering a set of randomly generated instances. The collected computational results are extremely interesting and show the relation between problem size and computation time and the effect of risk-aversion on revenue.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
