HD28 .M414 81 WJi ?/iU6 ALFRED P. WORKING PAPER SLOAN SCHOOL OF MANAGEMENT "Selecting Aircraft Routes for Long-haul Operations: A Formulation and Solution Method" Anataram Balakrishnan William Chien T. Richard T. Wong MIT Sloan School Working July Paper #3047-89-MS 1989 MASSACHUSETTS INSTITUTE OF TECHNOLOGY 50 MEMORIAL DRIVE CAMBRIDGE, MASSACHUSETTS 02139 311989 "Selecting Aircraft Routes for Long-haul Operations: A Formulation and Solution Method" Anataram Balakrishnan T. William Chien Richard T. Wong MIT Sloan School Working July 1989 Paper #3047-89-MS AU6 3 1 1989 . Selecting Aircraft Routes for Long-haul Operations A Formulation and Solution Method Anantaran Balakrishnan Sloan School of Management Massachusetts Institute of Technology Ca«bridge, MA 02139 T . William Chien Baruch College The City University of New York New York. NY 10010 Richard T. Wong Krannert Graduate School of Management Purdue University West Lafayette, IN 47907 Supported in part by the Research Initiative grant t Office of Naval Research NOOO 1 4 -86 -K-0689 under University ABSTRACT In this paper we consider the routing of main base to one or more terminal bases. routing decision critical becomes long-haul aircraft from a For these long-haul markets, the route because profitability must be evaluated for the extremely large number of feasible routes covered by the operation. In addition, "pickup-and-del ivery" the route selection characteristic of the task is complicated by the problem. Therefore, the development of an efficient procedure for selecting good candidate routes will facilitate the more profitable timetables. iterative flight We scheduling process define an aircraft and may lead routing problem to that captures the important profit-generating factors (such as intercity traffic estimates, revenues, selection decision. operating costs and aircraft capacities) in the route We formulate this problem as a mixed integer program, and develop a Lagrangian-based solution procedure that exploits the special structure of the problem. Computational results for several test problems indicate that the procedure is able to select a small number of profitable candidate routes, and provide good bounds that confirm the near-optlmality of the generated solutions. 1 INTRODUCTION AND LITERATURE REVIEW 1. The aircraft routing decision is one of the most important components in overall the operational process scheduling process flight flights timetable of consists phases: two of schedule evaluation phase. aircraft routes determined taking frequency the maximize to into and account operating profitable The flight scheduling phase construction schedule construction phase, of service generated from the a set of a first operation, while revenue and and are route each on estimates traffic the every for aircraft characteristics and operating costs, and origin-destination pair, some profit the airline. schedule a the In an for a developing of restrictions. construction The phase is completed by scheduling departure times and assigning aircraft to match the routing and The resulting timetable is then examined by operating frequency decisions. for feasibility and other cost and performance considerations in personnel Any desired improvements are then fed back the schedule evaluation phase. into the construction phase, and a revised set of routes and the associated The flight scheduling process iterates between frequencies are determined. these two phases until a satisfactory timetable final obtained is (Etschmaier and Mathaisel (1984)). Early research applications where on the the aircraft routing problem number of alternative routes is has focused on relatively small, and mainly used linear programming as the solution method (Dantzig (1963), Kushige (1963), and Miller (1967)). continuous contain variables; fractional These models represent frequencies as consequently, frequencies, which the may solutions result in are very likely suboptlmal to integer solutions even after applying some sophisticated rounding procedures. More 2 researchers recently, formulations model to de Lamotte instance, have using started and solve and Mathaisel routing aircraft the (1983) integer mixed programming problem. For used MPSX-MIP to solve problems of moderate size faced by a small short-haul airline. However, for the literature is still limited in terms of solution methods larger-scale For these airlines, number increases the faced by number covered cities Walker-Powell feasible routes. of dramatically operations their by cities from Sydney London. to connections are only possible airline considerations. several sets of the additional imposed also in instance, For called cities, The to cities are which covers Indexed so that direction of increasing order. The constraints simplify "slip based the points", crew are operational on scheduling selected, aircraft is required to stop at exactly one city in each set; two intermediate stops are and task, every flights may Between two slip point sets, at also terminate at one of the slip points. most discusses (1970) the Port Linkage Problem for Qantas Airline's Kangaroo Route, 26 carriers. long-haul the routing decision becomes complex because the large intermediate of problems routing aircraft permitted for each flight. Given the intercity demand, unit revenue per passenger carried, fixed operating cost for each origin-destination pair, and aircraft capacity restrictions, the Port Linkage Problem seeks a profit maximizing set of routes from Sydney to London (and/or to some slip points). Richardson (1976) proposed problem, and developed a a They reported computational Etschnaier and Richardson (1973) and mixed integer programming formulation for this Benders' results slip point sets, and at most 9 stops. decomposition for algorithm to solve it. problems with up to 17 cities, 2 . 3 The multi-stop aircraft routing problem is related to the pickup-and- delivery routing problem disembarkation of because passengers we consider must embarkation both The pickup-and- each intermediate stop. at and delivery routing problem also arises in the context of school bus routing (Bodin, Assad Golden, and Ball tractor-trailer and (1983)) mixed loads (Ball, Golden, Assad and Bodin (1983)). routing with However, this problem, which is considered more difficult than the pickup-only (or delivery-only) problem, unexplored largely still is researchers by (Golden and Assad (1986)) routing Since aircraft the is issue central in schedule the construction phase, developing more efficient and effective route selection procedures should result in more profitable timetables. In this paper we address the multiple (homogeneous) aircraft routing problem faced by longGiven carriers. haul destination pair, traffic aircraft estimates and operating costs, revenues for each origin- aircraft capacities, and the aircraft routing problem seeks a set of good candidate routes from a main base to one or more terminal bases in order to naxinize total profit. assume that, for long-haul operations, connections are only possible from This nodes. practical vast restriction on the lower cities can be indexed so that indexed nodes direction of to connections higher is indexed considered and even desirable because long-haul markets usually cover very geographic relatively long. areas and the distances traffic between interaediate cities are We note here that the aircraft routing problem requires Joint consideration of demand selection of the We demand to serve between (i.e., each determining the proportion origin-destination pair) and routing of aircraft in order to achieve the profit maximization objective. 4 In context, this demand selection decision arises because of the limited aircraft capacity and differences in the profitability of different origin- destination pairs. The rest of We first present a paper is organized as follows: this formal definition of the long-haul aircraft routing problem, and formulate it as solve mixed a optimization-based procedures tight bounds upper In Section optimally, problem the program integer to to evaluate focus we good select quality the Lagrangian relaxation for this purpose. relaxation scheme for the mixed Rather 2. on devising candidate of Section integer than attempting to 3 these efficient routes and obtain results. We use describes our Lagrangian programming We formulation. develop an efficient procedure that exploits the special problem structure to solve the Lagrangian subproblems a (and obtain upper bounds), and discuss Lagrangian-based heuristic which constructs good candidate routes (lower bounds). Section In 4 we present computational results for several randomly generated problems with up to 26 cities for the single-aircraft case, and 23 cities for the 4-alrcraft case. Finally, in Section 5, we suggest possible extensions of the model. 2. PROBLEM DEFINITION AND FORMULATION The aircraft routing problem that we consider involves routing a fleet of aircraft of the same type (i.e., aircraft having the same capacity and operating costs) from a main base, through several intermediate cities, to one or more terminal bases. As indicated earlier, the cities the bases) are indexed so that connections are possible from city j only if i < j. (including 1 to city The maximum (forecasted) intercity traffic demand (number 5 of potential passengers) is known, h < k) need not be and is denoted as satisfied. However, d^^j^. earns airline The a the entire traffic demand revenue passenger it transports from origin h to destination traveling on segment (i.j). i.e., directly from city denoted as As f^i- we demonstrate of rj^j^ every for We assume that the k. the operating cost of total operating cost is separable by route segments; and (with for each origin-destination (0-D) pair (h,k) to city j, is fixed, our can i later, model also accommodate variable operating costs that depend on the traffic volume on each For leg. development. simplicity, we variable these ignore costs The aircraft routing problem consists of (1) in our model determining the number of passengers to transport between each 0-D pair (subject to maximum demand traffic constraints), assigning the selected traffic to each (ii) aircraft (subject to aircraft capacity restrictions), and (iii) routing the aircraft. The problem objective is to maximize total profit. Every aircraft model. airline routes; imposes we do not some additional include all operating constraints revenues, operating cost, and aircraft such as traffic capacity, that influence the underlying routing decision of a long-haul carrier. the analysis of our basic aircraft routing model should the factors, it model captures can serve as some a of the most relevant most However, provide insights and information for the actual route selection decision. since its such detailed restrictions in our Instead, we focus only on those essential factors, demand, on useful First, profit-determining preliminary screening procedure to assess the market profitability of the regions in which the airline wishes to operate. Secondly, the routes selected by the model represent potentially profitable routes that deserve further examination in the iterative flight scheduling . 6 Finally, process. benchmark profit the indicated by model this serve can as a cost-effect analysis of other operational and service-level for considerations aircraft The G:(N,A) problem defined is consisting of n nodes in the set belonging arcs routing intermediate We a Nodes A. and cities segments. specifies to bases, the and arcs loss represent correspond of directed a network and at most n(n-l)/2 directed network of without assume, N, over various potential to generality, the that the flight airline Otherwise, we connect the last terminal unique terminal base. base to the remaining bases using dummy arcs (that are directed towards the last base) with zero cost. 1 The nodes are Indexed from and n denoting the main base and terminal base, 1 with indices to n, respectively; indices 2 to n-1 denote the intermediate cities. The network contains a directed arc from and direct city i possible. directed city to With path j only if this from node i network 1 to < j, representation, node directed arc or flight segment from We n. to i j ; will service an from aircraft use (i,j) to i to is j route is denote a the (h.k) denotes the 0-D pair with origin city h and destination city k, and <h,k> represents the "commodity" (which will be explained between later) 0-D pair The (h.k). input parameters for the problem are as follows: n number of cities (including the bases) covered by the operation, V number of aircraft (of the same type) at the main base, b aircraft capacity, d^l^ maximum (forecasted) traffic demand for 0-D pair (h,k), r^^ unit revenue for 0-D pair (h,k), 1 < h < k < n. 1 < h < k < n, f|j (non-negative) fixed routing cost per aircraft on flight segment (i.j) €A. To formulate the aircraft routing problem as a mixed integer program we define three sets of decision variables: Suj^ number of passengers transported from origin city h to destination city k. y^^ number of aircraft traveling on flight segment (i,j), hk x^^ number of passengers originating at city h and destined for city k who l<h<i <j<k<n. travel on flight segment (i,j), s-variables The determines demand to 0-D these for aircraft base which represent pairs 0-D will pairs routing variables) the passengers terminal will a set city h and of for decision selection how much and satisfied. be Finally, base. originating at served, be form demand the traffic the of y-variables The aircraft routes each 0-D pair from (h,k), destined for city k as a that (or, the main we treat separate commodity (denoted as commodity <h,k>); the x^^ variable denotes the amount of commodity <h,k> transported on segment Since traffic demand is (i,j). only a forecasted value representing the expected number of passengers for each 0-D pair, these the decision flow-based mixed routing problem: s and x variables are assumed to be continuous. variables, integer we formulate programming the following formulation [ARP] Using multi-commodity for the aircraft [ARP] maximize subject If - Ir,,s,, (1] y lo: Shk ^ <- for all [hM], [2] for all <hM>. P) for all (4] i=h +Sf^, if 0. if h<i<k -s^, if i=k i-1 k I xf Ixf^ = - 5 j-iM j-h ly,, by < Ixf5 (i.j). V <- (5) J-2 i-1 Yy Yy =0 - for 2 < for xf5 y Range of . s,j > 0, i < n-1. <hJo, [i.j], > for all <ia;>. (i.j], integer for all all (6] [7] and [8) [9] (i.j]. l<h<i<j<k<a indices: The objective is to maximize total profit, which is defined in (1) as the total term). revenue Constraint (the first (2) ensures term) that minus the the routing costs (the second amount of traffic served between each O-D pair does not exceed the corresponding demand. Constraints (3) 9 commodity flow conservation equations. are the net flow equal at every other Constraint leaving origin flight leave the main base. one trip that Here, during (5) and entering destination k outflow number of passengers exceed the total Constraints transported capacity of the model the and (5) commodity. this for (6) specifies that at most V aircraft can implicitly assume that each aircraft makes we the the not segment. Constraint h the transported between 0-D pair (h,k); total the should segment traveling on s^j^ equals inflow that states aircraft movements. most the node (4) any aircraft at <h,k> the number of passengers to through commodity of they set Essentially, Constraint planning horizon. (6) specifies that the number of aircraft entering each intermediate city must equal the number aircraft of constraint (i,j) (4) (7) leaving Finally, city. that impose we which specifies that passengers cannot travel on unless we schedule aircraft on this segment. also imposes the same restriction. in the integer formulation [ARP] Hence, However, . forcing the segment a Observe that constraint constraint (7) is redundant they are not redundant when we relax the Integrality restriction on the y variables; thus, including them in the formulation improves the linear programming relaxation bound. Notice directions without that, our assumptions about (from lower to higher indexed nodes only), permissible the routing problem A subtour formulation requires additional constraints to prevent subtours. is a directed cycle that does not include one or both bases; are not feasible routes. problem that is defined However, over a add explicit subtour thus, subtours when we maximize profit for a routing general subtours that have positive net revenue. must flight elimination network, the model may select To prevent this phenomenon, constraints; these we constraints 10 increase the formulation size and make the problem more difficult to solve. thus obviating the Our node indexing assumption makes the network acyclic, need for these additional constraints in our aircraft routing model. The aircraft problem using and number passengers continuous single-commodity relaxation sets two variables of (LP) also can formulated be in several For instance, Etschmaier and Richardson (1973) formulate alternative ways. the problem routing decision of variables single-commodity traveling each flight more compact, on formulation is variables: integral that represent Although segment. the this programming linear its routing (The LP bound obtained using their bound is very loose. formulation for one small test problem resulted in 120% gap between the LP and Integer solutions; the LP solution coincided with the integer solution using our formulation.) The size of the mixed integer program for number of nodes (with all 190 increases. For possible directed arcs Integer variables, 7505 for a 20-city complete network instance, (i,j), < i continuous [ARP] grows rapidly as the j), the formulation contains variables, and 9425 constraints. The size is more than doubled when we consider a 26-city problem, for which the formulation will contain variables, and 24400 constraints. relatively difficult enumeration methods. to solve In integer 325 variables, continuous 20800 Mixed integer programs of this size are optimally particular, using the branch-and-bound imbedded or other "plckup-and-delivery" characteristic of the problem complicates the task of evaluating the large number of feasible feasible routes; a 26-city routes (for instance, a 20-city problem has 262,144 the number of feasible routes increases to 16.777,216 for problem) . Therefore, we focus on developing an efficient 11 procedure to identify good (possibly suboptimal) demand selection decision candidate and routes using Lagrangian a which scheme relaxation we introduce in the next section. THE SOLUTION METHOD 3. A number successful of applications approach have been reported in the literature. relaxation Lagrangian the of For instance, Lagrangian- based algorithms have been used effectively to solve the traveling salesman problem (Held and Karp (1970)), Fisher and Jaikumar (Fisher, (1979), Nemhauser numerous its discuss (1981) applications. "complicating" and (1977)), the Van Wassenhove and Fisher and the facility location problem constraints, obtain a subproblem special structure. objective that can consists value solved be serves Shapiro the in certain objective The purpose of this relaxation is efficiently as an upper because of its the relaxed problem's For a given set of multipliers, function removing of incorporating them and (1974), problem Lagrangian relaxation approach and method function using Lagrangian multipliers. to assignment Geoffrion (1980)). the The generalized (Cornuejols, bound (for maximization objective functions) on the optimal profit of the original problem. In our Lagrangian relaxation-based solution procedure, we dualize the commodity flow conservation equations (3) using Lagrangian multipliers Uihk for all <h,k>, cost to h < transport destination k. i < k. each Intuitively, passenger u^ from represents the imputed routing origin The relaxed problem, denoted as [RP] h, , through city is given below. 1, to 12 [RP] I r^s,, = maximize Zrp ^f.^y - subject to II ^ (ij3 (h.k) [2], c[^jX[>5 tij)<hji> - (4] [9]. Where, J'hk + <^ cf^ = u|* - u]''' Thk = For a - ^ for a^l tWc], for all <lik>. given set of Lagrangian Bultipliers the , [i.j]. relaxed problen [RP] further decomposes into a demand selection subproblem (containing only the s variables) (containing and only allocation/route capacity a the and x The variables). y selection subproblem selected Lagrangian multiplier values determine the subproblem objective function coefficients, namely, the "adjusted" be added demand to the selection and f^j^ the imputed intercity Observe that if the application context imposes transportation costs c"^. variable operating costs revenues unit (in addition to the fixed costs), imputed cost subproblem hk c"^. can be As we solved show In the these costs can inspection. by section next the On the other hand, the capacity allocation/route selection subproblem can be transformed into a minimum-cost shortest path problem can be Solving solved the flow for problem the efficiently demand for the multiple-aircraft single-aircraft using selection and case. specialized capacity case or a Both these problems network flow algorithms. allocation/route selection . 13 subproblems gives an upper bound to [ARP] To improve the upper bound, we . iteratively update the Lagrangian multipliers using the subgradient search method. We also apply a Lagrangian-based heuristic to construct feasible solutions that provide lower bounds to [ARP] These different components of the Lagrangian relaxation approach are described in describes both greater demand the selection subproblems, subgradient the multipliers. detail the in selection following and the procedure search that we use to 3.1 allocation/route capacity and their solution methods. Section sections: Section 3.2 discusses update the Lagrangian we present a Lagrangian-based heuristic that In Section 3.3, constructs locally optimal solutions to [ARP]. Solving the Lagrangian Subproblems 3.1. The demand selection subproblea the , abbreviated as [DSS] , consists of only variables, and is defined below: s [DSS] maximize ^ Thk^hk ^0) subject to: < s^ < dj^ for all Observe that [DSS] can be solved by inspecting the sign of is. if f^ is positive for 0-D pair (h,k), (11] (lUc]. fj^j^. That this 0-D pair is "selected", and the entire demand for this 0-D pair is transported; otherwise, no passenger 14 for this 0-D pair is transported. Therefore, the optimal solution to the subproblem [DSS] is: ^hk- if fhk > 0. if fhk < 0. 'hk for all 0-D pairs (h.k). The allocation/route capacity selection subproblem , denoted [CARSS], contains only the x and y variables and is defined as follows: [CARSS] minimize ^rv X ^ c|%|^ + ^ (12] subject to: Sy,j < V J-2 n 1-1 [13) as 15 capacity on each segment of the "commodities" route among the the <h,k> (restricted by (15) and (16)). Observe requirements, be does not have commodity flow conservation [CARSS] since that the optimal allocation of capacity among the commodities can separately determined for each aircraft traveling on arc (i.j). minimum cost corresponding arc. that there are The optimal capacity allocation, flow aircraft this to Suppose can be m(< V) and the determined by solving the following continuous knapsack problem [CKP"j]: [CKP^j]: mmimize 6l^ = ^ c^h^) mf„ + [19] subject to: ^xf\ ^ This ^'^ ^ (20) for all <lUo. <Jhk [21] Sort the commodities in increasing order of Consider each commodity <h,k> in sequence from this list. negative, (dj^l^) mb continuous knapsack problem can be solved efficiently using the following greedy procedure: Cjj. < If c^^ is hk set x^^ equal to the minimum of commodity <h,k>'s traffic demand and the remaining aircraft capacity. Stop if the aircraft capacity is exhausted or all remaining commodities have non-negative imputed routing cost Cjj. Notice aircraft that travel dj^jj,, on arc which (i.j), denotes is the convex minimum in n routing since the "cost" when m commodities are , 16 selected non-decreasing order of c^^. in increases decreases.) can incremental the solve After computing d^ [CARSS] by flow arc each on segment.) flight for all arcs ^^ and m (i,j) If represent the on each arc. d^^^^ number the of resulting minimum aircraft of = cost is node n, to in [CARSS], (Recall that, aircraft we V, 1 1 m passengers additional selecting of finding a minimum-cost flow from node with the convex cost function the benefit number the (As assigned to negative, that the then directed paths in the optimal minimum-cost flow solution define an optimal set of aircraft routes, flow the on with the number of aircraft on each route equal to corresponding directed the path; otherwise, no route is initiated. We next demonstrate how to transform the minimum convex cost problem into ordinary network an Figure 1 original gives small a network flow problem over example contains 3 suitably modified network. a illustrating nodes and transformation. this directed 3 arcs. We The set up a modified network for the equivalent minimum-cost flow problem as follows: To model the convex cost function on each original arc (l,j). V parallel directed arcs from node (d|j^ .... is - V. d^ u_i). j Thus, respectively, to node 1 for the j with costs equal to d^.^ and first and the m arcs, the cost on each parallel directed arc from node 1 m = 1 to node j the marginal cost of assigning an additional aircraft to segment (i,j). Each directed arc carries an upper limit on flow of the parallel two we introduce arcs, dummy directed have costs equal to 1 unit. In addition to the modifies network also contains a dummy node D, arcs 0, (1,D) and (n,D). These two dummy directed arcs and upper limits on flow equal to V. cost flow problem is solved from node 1 and to node D. The Inimum- If the minimum cost is . 17 route no zero, selected; is otherwise, optimal the flows arc define an optimal set of aircraft routes for subproblem [CARSS] insert Fig. For is single-aircraft case, the necessary for each arc Observe (i,j). shortest contain length problems path directed any of can be cycles shortest the even 1 path to node n using d^jj as the length for though solved (and, is d^-j, can alternatively be solved by [CARSS] (i,j), that about here since only one cost coefficient, finding a shortest path from node arc 1 lengths arc easily hence, may since the any negative negative, the shortest be negative, the network does not cycles). path If defines the an optimal aircraft route; otherwise, no route is initiated. 3.2. Generating Upper Bounds for [ARP] For given any function value, bound to vector Zpp(U), [ARP]. of U the of Lagranglan multipliers, Lagranglan problem [RP] the objective provides an upper To find the best upper bound we must solve the following dual problem: [DP] min Zpp(U) U Our method attempts find to a near-optimal solution to [DP] by using a hk subgradient search method to update the multipliers u^ and improve Zpp(U). hk Since the multipliers u" serve as imputed variable costs for transporting passengers from origin through city .hk h, i, to destination k, we initialize 18 if i=h '-^hk / 2. = "i*^ (^hi ^ Sik) I [ where, fixed costs if h < < i for all k (h.k) if i=k. 2. the shortest path distance from node p to node q using the is g / ''hk b, / arc as f^g lengths. Effectively, the initialization scheme prorates the fixed routing costs to each passenger traveling from an origin city < k. h, through an intermediate city i to a destination city k, , for h < i At both the origin city h and the destination city k, we use half the unit revenue for 0-D pair (h.k), and treat it as a negative variable cost for transporting one passenger from city h to city k. Since our equations and — hk in (3) from Xj^j relaxation scheme dualizes the commodity flow conservation [ARP] [CARSS] , solutions the may not conserve outflow of commodity <h,k> at each node direction procedure for flow i, Lagrangian the obtained from subproblem h < at i £ each k, node. The [DSS] excess defines a subgradient multipliers hk Uj^ . Our solution iteratively updates the Lagrangian multipliers using a standard subgradient (1974), changing s^j search and Fisher method (1981)), (see, for example, Held, Wolfe and Crowder solves the revised Lagrangian subproblems, and computes the new subgradients until either the number of iterations exceeds a prespecified limit or the step-size multiplier value falls below a given threshold. We note here that our relaxation scheme does not satisfy the Integrality Property (Geoffrion 1974), and may, therefore, provide tighter bounds than the LP relaxation of [ARP]. 3.3. A Lagrangian-Based Heuristic for [ARP] The Lagrangian solutions, although not necessarily feasible to [ARP], 19 do provide useful Lagrangian-based information heuristic uses the capacity. procedure Recall attempts that Then, [ARP]. better to [CARSS] to to we apply a local utilize aircraft the define either a single route or a set of multiple routes. [CARSS] Our non-zero y solutions obtained from subproblem the that solution optimal construct an initial feasible solution for improvement solutions. constructing feasible for In the following discussions, we will focus on the case when multiple routes are obtained from [CARSS]. A step-by-step description of the heuristic follows: Step 1: Set them. Separate the set of routes into Vq single routes and number m=l Recall . that the optimal solution to equivalent the minimum-cost flow problem defines a set of aircraft routes, with the number of aircraft on each route equal the flow on the corresponding directed to The heuristic first obtains Vq single routes by tracing through each path. directed path and identifying the flow on the directed path. Step 2: can equal to initial supply eunounts To get a good initial supply amount [CARSS] that Obtain be served by the minimum of <h,k> to node k, the set from s^j^ the routes obtained in step of the demand for 0-D pair (h,k), solutions from for each 0-D pair (h.k) outflow of <h,k> from node the x h, 1, we set the s^ Inflow of and the aircraft capacity. That is, s°, = min { I j-h*l x,j ' . Ix j-h ^ , . dj^ . This supply assignment is preferable to using the subproblem [DSS], since this subproblem's b s ). solution obtained from "all-or-nothing" solution 20 characteristic traffic demand Step aircraft value, the dj^j^ capacity capacity. , Let . served by the m (H.Kj^j, on some Step information route m 6 (h.k) values s^j^ the constraints can be for little much how on the of maxlfflum to actually transport. For 3: that (h,k) provides capacity is violated, feasibility (H.K)^ denote the respect with Although each individual route. segments the of possible this for may route exceed situation to 0-D pairs of set satisfies the capacity constraint, checks 3 verify s^j^ the sum of the aircraft if aircraft and, reduces the supply amounts to those 0-D pairs that result in the smallest decrease in profit, until the capacity constraint is met on each segment of the route. for the 0-D pair Step Compute 4^: aircraft capacity by correspondingly necessary. Step possible denote the revised supply amount improvement For each 0-D pair . heuristic the s^j^ (h,k) 6 (H,K)^. aircraft capacity demand, Let computes the increasing the reducing (h.k) marginal profit amount this other If profit improves for none of the 0-D pairs, Revise 5: sj^j^ reallocating of to to performed. After revising the corresponding supply amounts, Step update an improved produce Xf 6: {s^j^} 4 , The if most profitable reallocation step in 4 Is the heuristic to check for other possible improvements. "i^V q. Stop increase capacity negative pairs, by reallocating the aircraft capacity to the most commodity returns to step and 0-D pair, 0-D the go to step 6. profitable . reallocating by that has unsatisfied (H,K)||| supply amount supply the & profit in . Otherwise , check profitability of this route by 1, and go to step 3. allocation. profit. In this However, case, we the , So far we have obtained entire route simply discard may this still route, 21 reduce y^j by the amount of aircraft flow for each (l.j) on this route, and set for all to Sjjj^ o {sPj^> hk' amounts 1 ^hk 6 (h.k) Finally, (H.K)„,. initial the set of supply is revised by setting <— ""^^ < s^^ - s^^. for all ) (h.k) € (H.K)„. The heuristic returns to step 3 to examine the next route. our In every implementation, iterations) 10 multiplier reaches to a heuristic the improve lower the prespecified is periodically applied bound threshold until value. (once step-size the Thereafter, the heuristic is applied after every subgradient iteration. COMPUTATIONAL RESULTS 4. Since nature, actual we problem data tested the reported in difficult is solution procedure Etschmaier randomly-generated problems. larger (in attempted terms number of problems obtain to on the Richardson and due single-aircraft categorized generated generator. 20, 23, 5 15 on 12-city several The test problems reported here are not only of described into and (1973), cities in the and aircraft) literature, than but reflect the size of the problems that arise in practice. were confidential its to classes. problem For each also the previously more closely The test problems problem class, we different instances using different seeds for the random number Problem classes 1 to 4 are and 26 cities, respectively. problems with 17, 20, 23, single-aircraft problems with 17, Problem classes 5 to 8 are 2-aircraft and 26 cities, to 12 are 3-alrcraft problems with 17, 20, respectively. 23, Problem classes 9 and 24 cities, respectively. 22 problem classes Finally, 20, 13, and 15 are 4-alrcraft problems with 17, 14, and 23 cities, respectively. Given the desired number (including the cities of bases), the test problem generator first randomly locates the required number of nodes on a 100 X 100 grid, and numbers the nodes in increasing order of the Euclidean All our test problems are complete, distance from the origin (0,0). Demand for each 0-D the possible directed arcs. the networks contain all pair was generated from a uniform (0,100) distribution. Finally, revenue on for each 0-D pair, and the fixed i.e., routing cost the unit each arc were generated as follows: ^hk = ^'^hk f^j = 30 where EU is * the aircraft capacity, "" UNIFORM(0,10) EU^j + UNIFORM(O.IOO) Euclidean b, , distance , for all (h,k). for all (i,j). between node p node and q. The was set equal to 100 for all the test problems. The solution procedure was coded in FORTRAN and implemented on an IBM 3083 computer. subproblem networks; For the single aircraft case, using the algorithm discussed for multiple aircraft problems, in we solved the shortest-path Lawler for (1976) acyclic we use a modified version of the NETFLO code (Kennington and Helgason (1980)) to solve the minimum-cost flow subproblem. structures; Our implementation does not employ with improvements in data organization, any special data the solution procedure could perhaps solve larger problems. Our implementation of step-size multiplier to 2.0, objective function value the subgradient and halves does not procedure the multiplier if initializes the the Lagrangian improve for 20 consecutive iterations. 23 solution The exceeds The procedure 1000, local the or improvement terminates when either number the of Iterations step-size multiplier reduces to a value below 0.01. heuristic was applied at first the iteration, and once every 10 iterations until the step-size multiplier reached a value of thereafter, 0.1; applied at every iteration. the heuristic was test problem we recorded the (i) Initial upper bound (obtained by solving the Lagrangian problem with the initial multipliers), bound when the procedure terminates, all heuristic solutions. LB * bounds, the UB (11) the best upper the best lower bound among (iii) We use the performance measure *GAP and LB are respectively the best = upper (UB - LB) / lower and to evaluate the quality of the solutions. Table of where 100%, and For each 15 1 summarizes the performance of the solution procedure for each problem classes. Notice that the algorithm was able to reduce the gap between the upper and lower bounds from an Initial value of 50.93% to a final value of 1.65% on average, and the largest final %GAP was only 3.22% among the 75 test problems. These statistics show the effectiveness of the subgradient method for improving the upper bounds. the following generated subproblem by interesting the [CARSS] method. characteristic For every of problem the We also observed heuristic instance that solutions we tested, generated only a few alternative routes for step-size multiplier values below 0.1, and the best feasible solution to each problem instance always resulted from one of the routes In this small set. the solution procedure seems to select a small Hence, number of good candidate routes from the fairly large number of possible routes in the problem. insert Table 1 about here 24 figures The requirements grow increases. for CPU number the as However, times Table in rate than the problem size. computational that aircraft number of the increases at a slower requirement computational the and/or nodes of show 1 the size of a 26-city complete For instance, network problem is more than twice the size of a 20-city complete network problem terms in formulation. times for constraints l-aircraft case 1.75 and times the in problem requirement was only 1.88 2-aircraft the for case. increasing the number of aircraft seems to increase the CPU time only Also, marginally. about instance, For procedure. For subproblem accounted for about single-aircraft accounted cases. requirement increases only to 4. 2 records the breakdown of total CPU time among the 3 submodules 2 solution the computational the on average when the number of aircraft increases from 383b Table of and on average the computational Yet, the variables decision of about for 1/3 of 1/5 the of feasible CPU time minimum-cost the for shortest the total the CPU time total the constructing Finally, 1/4 to solving problems; solving instance, flow the subproblem multiple-aircraft requires solutions for path increasing an proportion of the total CPU time as the number of nodes and/or the number of aircraft constructs, solution network every in for code generates the some to only We note iteration, subproblem for iteration, NETFLO increases. computational retain the limited In flow time initial number that of retrospect, problem may be network. an initial since the remains saved if we had routes underlying in modified since (for code feasible same the Furthermore, alternative NETFLO modified the fresh network and a [CARSS]. minimum-cost here each the [CARSS] step-size multiplier values below 0.1), we could use the solution from one iteration 25 thus saving some additional computational time. to initialize the next, insert Table 2 about here We also tested our solution procedure on the 12-city problem listed in Etschmaier and Richardson (1973). exactly one city slip the in To ensure that our solution will contain point set (cities 7 and 8), large fixed routing cost on arcs that skip these nodes with the set direct 12) 6 < i (i.e., flights and 9 arc 7 1 < j < 12), (7,8)). The Therefore, in large (1 routing costs to 6) between city 7 arcs (i,j), on these arcs make and following cities (9 If an aircraft stops at aircraft must stop at either city 7, the large routing cost and city 8 prevents a subsequent stop at city 8. Therefore, our solution will contain exactly one city in the slip point set (cities and 8). However, we relaxed to order to serve customers originating in to 6 and destined for cities 9 to 12, or city 8. (i.e., and on arcs interconnecting the nodes of between the preceding unprofitable. cities city < 1 we assigned a Etschmaier and Richardson's 7 original restriction that aircraft can stop at most twice before and after the slip point stop. Table 3 compares our solution with Etschmaier and Richardson's schedule. insert Table 3 about here Observe that by relaxing the maximum number of stops restriction, we obtained a solution with $1078 higher profit. This value is essentially an opportunity cost for imposing the upper limit on number of stops. Notice 26 that also optimal the route our solution by applying a drop heuristic, cities three problem that least illustrates decreases the problem can be derived from the original for which deletes one of the first flexibility and result The profit. the usefulness of this model our of test in selecting good candidate routes which must satisfy some specific operating Similar constraints. unique operational procedures considerations can employed be to account constructing aircraft in for routes other for a specific airline. 5. scheduling is one of the most important operational decisions Flight for airline. an iterations The final the of long-haul carriers, phase route timetable of flights is the result of several construction and evaluation route phases. For the aircraft routing problem in the route construction complex very is SUMMARY because selecting a set good of candidate routes requires evaluating a combinatorially large number of feasible routes, and incorporating the Therefore, the development candidate routes "pickup-and-delivery" will of an facilitate characteristic efficient procedure iterative the flight of for the problem. selecting good scheduling process and eventually lead to a more profitable timetable. this In paper we have discussed a version of the aircraft routing problem that captures some of the most important profit-determining factors in the route selection decision faced by a long-haul carrier that operates in a base-to-base environment. cities are mixed integer aircraft visited in increasing order of node indices. programming problem, and Our model makes the common assumption that formulation developed a for Lagranglan the multiple We presented a (homogeneous) relaxation-based solution . 27 procedure results show allocations large, exploits that that that this the procedure the of optimality of Computational problem. aircraft generates 1-3% within are random test problems. problem serves as structure routes relatively several for traffic and The proposed analysis of the aircraft routing preliminary screening procedure to assess the market a profitability of different regions, identify potentially profitable routes, and facilitate cost-effect analysis of other operational and service level policies In addition to the basic problem setting described in this paper, model accommodate can practice. For operating some instance, the in this constraints that may section we have illustrated a previous arise in method to modify the cost matrix in order to ensure that each route serves exactly one city in the slip point set. To comply with other operating constraints such as fixed number of stops between slip point sets, we can apply a drop/add heuristic to the best solution for the basic model. We note that although the Lagrangian upper bounds are still valid for the more restricted problem, additional operating hence, the accommodate addition to lower constraints bound. variable the expect we As operating fixed cost will we increase because usually decrease the noted costs per to %GAP the our earlier, (that depend on aircraft on each imposing profit, model traffic flight and easily can volume) In segment. Application contexts where more than one terminal base exits can be solved using a suitable network representation. modeled by replicating original one-way network. each node, i.e., Round-trip operations can also be adding a mirror Image of The solution procedure can then be applied the . , 28 to the expanded network with modified demand, and operating cost revenue, matrices Several extensions investigation. First, variants and basic our of model can accommodate while our model further merit fixed as variable operating costs, all flight segment. Additional test results for problems with variable costs our test a fixed cost for each testing of alternative heuristic methods and Empirical might be useful. problems assume only multiplier adjustment schemes also worth pursuing. is assumes that all aircraft are of the same type. to use aggregate routing variables Second, our model This assumption enables us (the y variables) in formulation [ARP] instead of detailed binary variables to trace the route for each individual Modeling heterogeneous aircraft fleet (with different operating aircraft. costs and capacities), on the other hand, will require a detailed formulation that destroys some of the special structure in our model. solution well. algorithm might We method's expect, possibly however, computational Finally, because requirements (measured in terms of *GAPs) aircraft types. that extend will to of will this the more complex model Our as increased complexity the increase and its performance deteriorate for problems with multiple relaxing the node indexing assumption (i.e., the assumption that flights are permitted only in the direction of increasing node indices) might increase the model's applicability to contexts (such as short-haul routes) where the cities are not completely ordered. Again this extension increases the model complexity greatly, and may require different solution approaches. Chien (1987) explores some of these assumptions. . 29 ACKNONLEDGENENTS The authors wish to thank the two anonymous referees and the Associate Editor for their heipful comments on the presentation of the paper. REFERENCES Ball M., Golden B., Assad A. and Bodin L. (1983). Planning for truck fleet size in the presence of a common carrier option. Decision Sciences 14, 103-120. Bodin L.. Golden B., Assad A. and Ball M. (1983). The state of the art in the routing and scheduling of vehicles and crews. Computers and Operations Research 10. 63-212. Chien Solving Two Integrated Logistical Problems Using Approaches. Ph.D. Dissertation. Krannert Graduate School of Management. Purdue University. West Lafayette, IN. T. W. (1987). Lagranglan Relaxation Cornuejols G., Fisher M. and Nemhauser G. 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NETFLO'*) NETFLO FEAS . 21.4% . 8% Aircraft 61 2% 22 1% 16. 7% . . 26 58 0% 23 7% 18 3% . . . Table 3 Solution from Etschmaier and Richardson (1973 Optimal Route: Profit : 1-3-5-8-9-12 10312 Passenger Distribution: MIT LIBRARIES DUPL 3 TDflO 1 0DS70432 2