Research on Robust Optimization in Airlines' Hybrid Channel Coordination Considering Service Level

DOI

10.2991/msbda-19.2019.41How to use a DOI?

Keywords

Service level, Channel coordination, Robust optimization, Uncertainty

Abstract

This paper considers service level in the study of airlines’ hybrid channel coordination, which has great impact on airlines’ operation and performance. Firstly, the service level was expressed by demand function and a robust optimization model of airlines’ hybrid channel coordination with uncertain demands was established based on the channel coordination features and scenario analysis. Then numerical experiments of the robust optimization model were conducted to explore the relationship between service level, distribution channel ratio, profits and system robustness. The results show that the model is robust to uncertain market needs; airlines should pay attention to the influence of service level on themselves and maintain the optimal service level, which can not only improve the system robustness but also increase their own revenue; agents should seize opportunities, focus on reducing channel costs, and develop cooperation to improve service level to attract passengers; airlines and their agents should work together to achieve a win-win situation.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Lijun Zheng
AU  - Rong Hu
AU  - Feifei Zhang
PY  - 2019/08
DA  - 2019/08
TI  - Research on Robust Optimization in Airlines' Hybrid Channel Coordination Considering Service Level
BT  - Proceedings of the 2019 International Conference on Modeling, Simulation and Big Data Analysis (MSBDA 2019)
PB  - Atlantis Press
SP  - 268
EP  - 276
SN  - 2352-538X
UR  - https://doi.org/10.2991/msbda-19.2019.41
DO  - 10.2991/msbda-19.2019.41
ID  - Zheng2019/08
ER  -