Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/94546
Title: | A mixed wholesale-option-contract to fix the demand imbalance between substitutable air cargo routes : a cooperative game approach | Authors: | Shaban, IA Chan, FTS Chung, SH Qu, T |
Issue Date: | 15-Nov-2021 | Source: | Expert systems with applications, 15 Nov. 2021, v. 182, 115300 | Abstract: | In this study, we consider a capacity allocation problem with an airline that sells cargo routes to multiple freight forwarders. The airline faces the problem whereby its fixed capacity from one route cannot cover the sum of freight forwarders’ orders (hot-selling routes), while the freight forwarders’ total orders from the substituting route are much less than its capacity (underutilized routes). To solve this imbalance problem, a sequential cooperative game is performed between the airline and the freight forwarders in which they agree that the airline assigns an amount in the underutilized routes proportional to the forwarder's order from the hot-selling routes. In this game, the players’ payoffs are the expected profit from using a mixed-wholesale-option contract between the airline and the freight forwarders. The model solution shows that the demand in the underutilized routes follows self-replicating distributions. In addition, the mixed wholesale-option model is compared with the pure wholesale and pure option-contract models, and the results reveal that the mixed model provides the highest allocations in the underutilized routes, leading to a better demand balance among the substitutable routes. | Keywords: | Air cargo Capacity allocation Cooperative game Option-contract Wholesale contract |
Publisher: | Pergamon Press | Journal: | Expert systems with applications | ISSN: | 0957-4174 | EISSN: | 1873-6793 | DOI: | 10.1016/j.eswa.2021.115300 | Rights: | © 2021 Elsevier Ltd. All rights reserved. © 2021. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/. The following publication Shaban, I. A., et al. (2021). "A mixed wholesale-option-contract to fix the demand imbalance between substitutable air cargo routes: A cooperative game approach." Expert Systems with Applications 182: 115300 is available at https://dx.doi.org/10.1016/j.eswa.2021.115300. |
Appears in Collections: | Journal/Magazine Article |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Shaban_Mixed_Wholesale-Option-Contract_Fix.pdf | Pre-Published version | 1.56 MB | Adobe PDF | View/Open |
Page views
58
Last Week
0
0
Last month
Citations as of Oct 13, 2024
Downloads
43
Citations as of Oct 13, 2024
SCOPUSTM
Citations
10
Citations as of Oct 17, 2024
WEB OF SCIENCETM
Citations
7
Citations as of Oct 17, 2024
Google ScholarTM
Check
Altmetric
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.