A Robust Model for Rental Car Inventory Dynamic Control Based on Customer Choice Behavior

Abstract

Abstract:

Car rental system operation state can be divided into leasable or not. Considering the situation that consumer cannot lease vehicles at the rental site, in order to improve vehicle average revenue and reduce forecast errors of expected profit, shift state space of car rental state is constructed. Taking the Markov decision processes and the strategy of continuous real-time customer behavior changes detection in a short period, an inventory control model is presented. Example analysis shows that the model can improve the inventory control precision for car renters, and realize the flexible control of the vehicle.

Key words: revenue management, car rental, consumer choice behavior, inventory dynamic control, Markov decision processes

YANG Yazao1,2, LI Pengfei1, CHEN Jian1, HAO Xiaoni3. A Robust Model for Rental Car Inventory Dynamic Control Based on Customer Choice Behavior[J]. Industrial Engineering Journal .

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