Revenue management with heterogeneous resources: Unit resource capacities, advance bookings, and itineraries over time intervals
Paat Rusmevichientong1, Mika Sumida1, Huseyin Topaloglu2, Yicheng Bai2
1Marshall School of Business, University of Southern California; 2School of Operations Research and Information Engineering, Cornell University
We consider revenue management problems with heterogeneous resources, each with unit capacity. An arriving customer makes a booking request for a particular interval of days. The goal is to find a policy that determines an assortment to offer each customer to maximize total expected revenue. We show that we can efficiently perform rollout on any static policy. We develop two static policies derived from value function approximations, and give performance guarantees for both policies.