Challenges in Air Cargo Allotment Planning

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Prof. Joern Meissner, PhD

Professor of Supply Chain Management and Pricing Strategy

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On December, 1st, 2010 Dr. Joern Meissner, Lancaster University Management School will give a lecuture on the topic "Challenges in Air Cargo Allotment Planning". The lecture is open to the public. Space is limited, so please register ahead of time.


The Air Cargo industry faces some unique challenges: Highly volatile demand, weight/volume uncertainty even for pre-booked allotments and very short booking cycles are some of the features. We discuss these challenges and propose a new dynamic programming formulation that an air cargo company can use to maximize its expected profit. In particular, our formulation differs from previous ones in that capacity and demand uncertainty is incorporated into the model using probability distributions, and that we aim to create a combined decision model that will integrate the allotment and spot-sale booking processes under uncertainty. Since the full model is computationally intractable, we propose a discretized version using shipment types and probability confidence intervals. We present first numerical results from an industry project with the cargo division of a major airline. (Joint work with Kevin Glazebrook and Emily Cookson)


Joern Meissner is a Lecturer in the Department of Management Science at Lancaster University Management School (LUMS) in England. He holds a PhD and an MPhil in Management Science from Columbia Business School in New York City. Meissner’s main research focus is the area of stochastic and dynamic decision-making, and in particular applications to logistics, operations strategy and revenue management. He has published his work in journals such as Operations Research, Manufacturing & Service Operations Management (MSOM), European Journal of Operational Research (EJOR), International Journal of Production Research among others. At LUMS, Joern Meissner teaches the MBA Core course in Operations Management and has developed three new MBA electives. Please visit his academic homepage www.meiss.comfor further details.

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The Lecture Series

The KLU Lecture Series is a forum for scientists and practitioners to talk and discuss on state-of-the art topics related loosely to logistics and entrepreneurship.