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INFORMS Philadelphia – 2015

449

WC66

66-Room 113C, CC

Airline Operations

Sponsor: Aviation Applications

Sponsored Session

Chair: Cheng-lung Wu, Senior Lecturer, UNSW Australia, School of

Aviation, UNSW Australia, Kensington, NS, 2052, Australia,

c.l.wu@unsw.edu.au

1 - Enhanced Delay Propagation Tree Model with Bayesian Network

for Modelling Flight Delay Propagation

Cheng-lung Wu, Senior Lecturer, UNSW Australia, School of

Aviation, UNSW Australia, Kensington, NS, 2052, Australia,

c.l.wu@unsw.edu.au

, Weiwei Wu

This paper developed an enhanced Delay Propagation Tree model with Bayesian

Network (DPT-BN) to model delay propagation and interdependencies between

flights. Results showed that flights have non-homogeneous delay propagation

with non-IID delay profiles. The DPT-BN model was used to infer posterior delay

profiles with different delay scenarios. We also demonstrated how robust airline

scheduling methodologies can benefit from this probability-based delay model.

2 - Integer Programming Based Pairing Generation with Deviation

Penalty in Airline Crew Recovery

Hyunsuk Lee, Ph.d Student, McCombs School of Business, The

University of Texas at Austin, 2110 Speedway Stop B6500, CBA

5.202, Austin, TX, 78712, United States of America,

hyunsuk.lee@utexas.edu,

Douglas Fearing

In this paper, we will explore how to model airline scheduling problems

(flight/crew scheduling and recovery), and apply IP based pairing generation

technique to crew recovery with deviation penalty. In particular, we will control

IP based pairing generator by restricting the number of different flights in new

pairing. Such a study should hopefully give insights to minimizing deviations

from original schedule.

3 - U.S. Commercial Aviation Demand Forecasting with a Panel Data:

The Role of Individual Heterogeneity

Mei Liu, Economist, FAA, 6712 Tildenwood Lane, Rockville, MD,

20852, United States of America,

chia-mei.liu@faa.gov

,

Dipasis Bhadra

Studies in aviation demand forecasting have long relied on time series

approaches, ignoring the individual heterogeneity in a panel data. Heterogeneity

is most evident in the U.S. aviation sector where network effect is prevalent. This

paper identifies the route-specific effects from 2000 through 2010 and takes it

forward to perform a 4-year-ahead forecasting. We evaluate whether the

inclusion of individual heterogeneity reduces forecast errors.

WC67

67-Room 201A, CC

Risk in Freight Transport and Logistics

Sponsor: TSL/Freight Transportation & Logistics

Sponsored Session

Chair: Choungryeol Lee, Purdue University,

United States of America,

lee1210@purdue.edu

1 - Downside Risk Analysis for Planning Intermodal

Facility Investments

Irina Benedyk, United States of America,

birina@purdue.edu,

Hong Zheng, Yuntao Guo, Srinivas Peeta, Ananth Iyer

We apply Down Side Risk analysis to plan intermodal facility investment

decisions. The model accounts for factors such as the future global commodity

flow changes and demand uncertainty. Experiment results show that tighter

downside risk constraints lead to the inland intermodal facilities being preferred

for investment compared to the ports. They also suggest that low downside risk

values increase the total cost but reduce its variation.

2 - Procuring and Transporting Commodities: Hedging against Price,

Demand and Freight Rate Risk with Options

Arun Chockalingam, Assistant Professor, Eindhoven University of

Technology, Den Dolech 2, Eindhoven, 5612AZ, Netherlands,

A.Chockalingam@tue.nl,

Taimaz Soltani, Jan Fransoo

We consider a firm that procures and transports a commodity via ocean freight to

its production plant where the commodity is converted to a final product to meet

customer demand. Transportation of commodities via ocean freight has increased

significantly in recent years leading to increasing volatility in the cost of freight

transportation. We study how a firm can reduce its procurement and

transportation costs using options on procuring the commodity and freight space

in a newsvendor setting.

3 - Risk Management Strategies in Transportation Capacity

Decisions: An Analytical Approach

Jiho Yoon, Michigan State University, N468 North Business

Complex, Michigan State University, East Lansing, MI, 48824-

1121, United States of America,

yoon@broad.msu.edu

,

Hakan Yildiz, Sri Talluri

In recent years, access to freight transportation capacity has become a constant

issue in the minds of logistics managers due to capacity shortages. In a buyer-

seller relationship, reliable, timely, and cost-effective access to transportation is

critical to the success of such partnerships. Given this, guaranteed capacity

contracts with 3PLs may be appealing to shippers to increase their access to

capacity and respond effectively to customer requirements. With this new

opportunity, 3PLs must focus on approaches that can assist them in analyzing

their options as they promise guaranteed capacity to shippers when faced with

uncertain demand and related risks in transportation. In this paper, we

analytically analyze three capacity-based risk mitigation strategies and the mixed

use of these individual strategies using industry based data to provide insights on

which strategy is preferable to the 3PL and under what conditions. We posit that

the selection of a strategy is contingent on several conditions faced by both the

shipper and the carrier. Although our approach is analytical in nature, it has a

high degree of practical utility in that a 3PL can utilize our decision models to

effectively analyze and visualize the trade-offs between the different strategies by

considering appropriate cost and demand data.

4 - Freight Option-Based Mechanism for Multiple Carrier

Collaborative Less-Than-Truckload Logistics

Choungryeol Lee, Purdue University,

United States of America,

lee1210@purdue.edu,

Srinivas Peeta

We propose option-based mechanisms for LTL carrier-to-carrier collaboration to

alleviate operational and financial risks resulting from stochastic demand in the

operational horizon. It aims to enhance the utilization of fleet capacity and reduce

the induced costs of handling demand variability. Numerical experiments

illustrate the feasibility and provide useful insights of implementing option-based

multiple carrier collaborative LTL logistics.

WC68

68-Room 201B, CC

Traffic Control

Sponsor: Transportation, Science and Logistics

Sponsored Session

Chair: Indrajit Chatterjee, University of Minnesota, Twin Cities, 500

Pillsbury Drive SE, Minneapolis, mn, 55455, United States of America,

chat0123@umn.edu

1 - Computationally Efficient Algorithms for the Calibration of High-

resolution Stochastic Traffic Simulators

Chao Zhang, Massachusetts Institute of Technology, 77

Massachusetts Ave, Cambridge, MA, 02139, United States of

America

,chaoz@mit.edu,

Carolina Osorio, Gunnar Flütterüd

This work formulates the calibration problem as a simulation-based optimization

(SO) problem which is addressed by the metamodel approach. The metamodel

combines information from both the simulator and an analytical traffic model

that relates the calibration parameters to the simulation-based objective function.

The performance of the proposed approach has been tested on a toy network and

is currently being evaluated on a large-scale metropolitan network in Berlin,

Germany.

2 - Decentralized Traffic Assignment for Multi-level Modeling

Ehsan Jafari, University of Texas at Austin, Austin, TX,

United States of America,

ejafari@utexas.edu

, Stephen Boyles

Statewide planning model is used for planning projects that will have implications

on transportation across the entire state. At the same time, medium-sized cities

have their own planning model. The process of updating these models in a way

that maintains consistency between them is laborious and time-consuming. In

this research, a decentralized bi-level modeling approach, based on the concept of

network contraction, is proposed to address these issues.

3 - A Simulation-based Optimization Algorithm for Traffic

Responsive Control

Linsen Chong, Massachusetts Institute of Technology,

Cambridge, MA, United States of America,

linsenc@mit.edu

,

Carolina Osorio

We propose a simulation-based optimization (SO) framework to address generally

constrained urban traffic responsive control problems. We develop a tractable

dynamic traffic model that is inspired from traffic flow theory, transient queueing

theory and is parameterized by time-dependent sensor data. We illustrate the

performance of the proposed method through a large-scale urban traffic case

study.

WC68