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• W2094480262 abstract "Motivated by one of the leading intermodal logistics suppliers in the United States, we consider an internal pricing mechanism for managing a fleet of service units (shipping containers) flowing in a closed queueing network. Nodes represent geographic locations, and arcs represent travel between them. Customer requests for arcs arrive over time, and the problem is to find an accept/reject policy that maximizes the long-run time average reward rate from accepting requests. We formulate the problem as a semi-Markov decision process and give a simple linear program that provides an upper bound on the optimal reward rate. Using Palm calculus, we derive a nonlinear program that approximately captures queueing and stockout effects on the network. Using its optimal Lagrange multipliers, we construct a simple functional approximation to the dynamic programming value function. The resulting policy is computationally efficient and produces superior economic performance as compared with other policies. Furthermore, it provides a methodologically grounded solution to the firm's internal pricing problem." @default.
• W2094480262 created "2016-06-24" @default.
• W2094480262 creator A5013221361 @default.
• W2094480262 date "2007-12-01" @default.
• W2094480262 modified "2023-10-02" @default.
• W2094480262 title "Price-Directed Control of a Closed Logistics Queueing Network" @default.
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• W2094480262 doi "https://doi.org/10.1287/opre.1070.0408" @default.
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