Author : Wang Chi Cheung
Publisher :
ISBN 13 :
Total Pages : 57 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Efficiency and Performance Guarantees for Choice-Based Network Revenue Management Problems with Flexible Products by : Wang Chi Cheung
Download or read book Efficiency and Performance Guarantees for Choice-Based Network Revenue Management Problems with Flexible Products written by Wang Chi Cheung and published by . This book was released on 2016 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: We consider the choice-based network revenue management problem (NRM). The LP relaxation, Choice-based Deterministic Linear Program (CDLP-P), has been proposed to mitigate the curse of dimensionality of the choice-based NRM. Despite the importance of CDLP-P, there is no polynomial time algorithm for solving CDLP-P for general choice models. Moreover, most heuristics for solving CDLP-P require solving the underlying Single Period Problem (SPP), which could be NP-hard. We propose the Potential Based algorithm (PB) that solves CDLP-P to near optimality with provable efficiency, assuming the ability to solve the underlying SPP approximately. In particular, PB implies polynomial time algorithms for approximating CDLP-P for a variety of choice models, such as Nested Logit, Mixed Logit and Markov Chain models, to near optimality.We also propose the Approximate Column Generation heuristic (ACG), which generalizes the classical Column Generation heuristic, and returns a near optimal solution to CDLP-P at termination. Different from PB, ACG is not known to be provably efficient. Finally, building on the tractability result, we design an earning-while-learning policy for the online NRM problem under an MultiNomial Logit choice model with unknown parameters. The policy runs in polynomial time, and achieves a sublinear regret.