Seminar on December 15, 2017

A Static Model in Single Leg Flight Airline Revenue Management
Hans Frenk
Faculty of Engineering and Natural Sciences, Sabancı University

Abstract
Static models on single leg airline revenue management generally consider booking limits or protection limits as the main decision variables to control reservation requests. In this talk, we provide an alternative framework in which the decision variables are the closing times of fare classes. In a continuous time model with nonhomogeneous Poisson arrivals, cancellations, and no-shows, we study the problem of finding optimal closing times to maximize the expected net revenue from a given flight. We analyze the value function, point out some easy cases, and discuss an easily implementable dynamic programming based solution method. The focus of this talk will be on showing how the theory of Poisson random measures can be extremely useful in analyzing revenue management problems. If time permits we will also discuss applications of the theory of nonhomogeneous Poisson processess to rebate and pricing problems.

This talk discussess joint work with S.O Sezer (Sabanci University) and Behrooz Pourghannad (University of Minnesota).

Short Bio
Hans Frenk joined in 2009 the Faculty of Engineering and Natural Sciences at Sabanci university, Istanbul. He graduated from Utrecht University (master degree in mathematics) and obtained his Ph.D (1983) from Econometric Institute, Erasmus university, Rotterdam, within the field of renewal theory and regenerative processes. Through the years his main research interest is in the theory of stochastic processes and optimization (linear, nonlinear and dynamic programming). At the moment his research is applying those techniques to problems in Management Science and Engineering (inventory control, pricing and revenue management).

Venue
Friday, December 15, 2017 at 4.00 pm in IE03