Network Revenue Management with Independent Demands

Guillermo Gallego; Huseyin Topaloglu

doi:10.1007/978-1-4939-9606-3_2

Network Revenue Management with Independent Demands

Guillermo Gallego^*
, Huseyin Topaloglu

^*Corresponding author for this work

Department of Industrial Engineering and Decision Analytics

Research output: Chapter in Book/Conference Proceeding/Report › Book Chapter › peer-review

1 Citation (Scopus)

Abstract

In this chapter, we consider a firm that has finite capacities of several resources that can be instantly combined into different products with fixed prices. We assume that there is an independent demand stream for each of the products that arrives as a Poisson process. A requested product is purchased if available. The firm generates the revenue associated with the sale and updates the inventories of the resources consumed by the product. If the requested product is not available, then the customer leaves the system without purchasing. The objective of the firm is to decide which products to make available over a finite sales horizon to maximize the total expected revenue from fixed initial inventories that cannot be replenished during the sales horizon.

Original language	English
Title of host publication	International Series in Operations Research and Management Science
Publisher	Springer New York LLC
Pages	47-81
Number of pages	35
DOIs	https://doi.org/10.1007/978-1-4939-9606-3_2
Publication status	Published - 2019

Publication series

Name	International Series in Operations Research and Management Science
Volume	279
ISSN (Print)	0884-8289
ISSN (Electronic)	2214-7934

Bibliographical note

Publisher Copyright:
© Springer Science+Business Media, LLC, part of Springer Nature 2019.

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10.1007/978-1-4939-9606-3_2

Cite this

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Network Revenue Management with Independent Demands. / Gallego, Guillermo; Topaloglu, Huseyin.
International Series in Operations Research and Management Science. Springer New York LLC, 2019. p. 47-81 (International Series in Operations Research and Management Science; Vol. 279).

Research output: Chapter in Book/Conference Proceeding/Report › Book Chapter › peer-review

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Network Revenue Management with Independent Demands

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