Tito Homem-de-Mello

Solving the Vehicle Routing Problem with Stochastic Demands using the Cross Entropy Method

  • Krishna Chepuri
  • Tito Homem-de-Mello
    • Categories Applications - OR and Management Sciences, Global Optimization Tags , ,

    An alternate formulation of the classical vehicle routing problem with stochastic demands (VRPSD)is considered. We propose a new heuristic method to solve the problem. The algorithm is a modified version of the so-called Cross-Entropy method, which has been proposed in the literature as a heuristics for deterministic combinatorial optimization problems based upon concepts of rare-event … Read more

    A Class of Hybrid Methods for Revenue Management

  • William Cooper
  • Tito Homem-de-Mello
    • Categories Dynamic Programming, Stochastic Programming, Yield Management

    We consider a Markov decision process model of a network revenue management problem. Working within this formal framework, we study policies that combine aspects of mathematical programming approaches and pure Markov decision process methods. The policies employ heuristics early in the booking horizon, and switch to a more-detailed decision rule closer to the time of … Read more