Availability calculation based on robust optimization

@article{Lardeux2010AvailabilityCB,
  title={Availability calculation based on robust optimization},
  author={Benoit Lardeux and Oriana Goyons and Charles-Antoine Robelin},
  journal={Journal of Revenue and Pricing Management},
  year={2010},
  volume={9},
  pages={313-325}
}
This article deals with an approach to solving the availability calculation for airline products in real time while accounting for uncertainty. The approximate displacement cost, also presented as certainty equivalent control in Bertsimas and Popescu (2003), is calculated at each booking request to accept or deny the sale of a product. The solution approach is based on network models of revenue management, and captures the stochastic nature of the problem by optimizing the robust deviation. A… CONTINUE READING

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