TITLE:
Robust Capacity Control in Revenue Management: A Literature Review
AUTHORS:
Zheyu Jiang
KEYWORDS:
Revenue Management, Robust Optimization, Capacity Control, Pricing Control
JOURNAL NAME:
Open Journal of Business and Management,
Vol.6 No.2,
April
30,
2018
ABSTRACT: Revenue management is one of the classical topics in operations research. In
recent 10 years, robust optimization methodology motivated a rapid growing
amount of literature on robust revenue management. This stream of research
does not rely on strict prior assumptions on distribution of random demand
in classical revenue management theory but is capable to maintain tractable
and to derive interesting structural properties of optimal solution. In this paper,
we first briefly introduce theoretical basis of revenue management and
then provide detailed review of literature on robust revenue management.
Then potential directions of future research are identified.