Managing Flexible Products on a Network

摘要: A flexible product is a menu of two or more alternatives products serving the same market. Purchasers are assigned to one at later date. Gallego and Phillips show that capacitated suppliers, such as airlines hotels, can potentially improve revenue by offering in addition traditional specific products. In this paper, we extend concept networks. We study network management problem with different settings: where demand for each independently exogenously generated; other driven consumer choice model. both these settings optimal value stochastic optimization be closely approximated deterministic linear program. independent case corresponding program modest size. When customer model, has exponentially many variables; however, an important class models efficiently solved using column-generation. report findings numerical experiments real airline subnetwork how results vary function key inputs.