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Wraparound arc
Decision Variables:
Tries to minimize the (Operational Cost- Generated revenue) of all the assignments of fleet type k to flight leg I
This constraints states that for each node and each fleet type :
All the flights of type k that are arrived at n and are going to stay plus all the flights originating from n that are going to fly out should be equal to the flights on the ground that were waiting until the time at node n plus the number of flights that are going to fly into n. This constraint is the famous Flow Balance constraint in network flow models. This constraint states that all the flights that are coming to a node should be leaving that node at some point, or to state it differently, total number of aircrafts arriving at an airport (of each type) is equal to the total number of departing aircrafts. Not satisfying this constraint will cause the model to accumulate all the aircrafts at one node.
This constraints states that for each fleet type and each arc :
Assignment variables are 0-1 variables that shows the decision made about that particular assignment. Non-negativity constraints for flights on the ground which states that variable can not assume negative values. Note that for the flights on the ground there is no indication of the variable being integer, while these variables are inherently integer! In some network problems, The integer constraints can be relaxed thanks to the special structure of the problem, which makes the problem much easier to solve.
Solving FAM
FAM is an integer, multi-commodity network flow problem with side constraints. It can be solved (not always easily and not for all the problems) using offthe-shelf optimization software packages such as:
CPLEX Xpress-MP
Assume fleeting I is selected: Demand for flight 1 is 150 (75+75) and demand for flight 2 is 225 (150+75) by this fleeting, each flight leg will have capacity of 100 (capacity of aircraft A) so 50 passengers on flight 1 and 125 (225-100) passengers on flight 2 will spill. Since the fare for X-Z is less than the sum of fares for X-Y and Y-Z The Revenue maximizing strategy is to spill passengers from X-Z (50) with the cost of 15000 (50*300) and flight 1 will have enough capacity. Because the local fare of Y-Z is less than X-Z, 75 passengers are spilled from Y-Z itinerary (with the cost of 16875) and since 50 are already spilled from X-Z, flight 2 will be at capacity and total spill cost for this fleeting is 15000+16875=31875
Considering the contributions of each fleeting, the optimal solution for this small example is fleeting I.
The main reason for big differences is that greedy approach does not capture flight leg interdependencies or network effects.
IFAM: Description
Objective function:
The objective is to minimize the sum of the operating cost of flying leg I with aircraft type k for all flight legs and fleet types and the negative of the total revenue.
Constraints:
First 3 constraints are the same as in Basic FAM model
IFAM: Description
Constraints:
Passenger flow and capacity constraints:
This constraint makes sure that for each aircraft in a fleet, the number of passengers assigned to that aircraft will not exceed its capacity.
Demand Constraint:
This constraint will limit the total number of passengers traveling on or spilled from itinerary p to the unconstrained demand of p.
IFAM: Description
Constraints:
Passenger flow and capacity constraints:
These set of constraints will bound the variables to be positive and also fleet assignment variables should be 0-1.