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A Capacity Allocation Model for Air Cargo Industry: A Case Study

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Intelligent and Fuzzy Systems (INFUS 2022)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 505))

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Abstract

The transportation sector is one of the basic elements of the country’s economy. Today, the growth and enrichment of the economy, competitive conditions due to the need to send products faster, such as security increases the importance of the transport sector. Due to meeting these needs, the importance of air cargo transportation is increasing day by day. Air cargo transportation can be reserved for allotment agreements or opened directly for free sale. Defining the proportion of the capacity for allotment agreements and free sale are among the most fundamental issues in the air cargo industry. That remains an open problem; since capacity allocation is an essential factor affecting the profitability of air cargo companies. In this paper, we used Conditional Value at Risk (CVaR) and Artificial Neural Network (ANN) models to solve the capacity allocation problem. We used real datasets for different destinations. The results of the capacity allocation model provide a basis for pricing policies. The paper concludes by giving open research issues related to the capacity allocation problem and the cargo industry.

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Acknowledgements

This work has been supported by the Turkey’s Council of Higher Education (CoHE 100/2000 Doctoral Scholarship Program) and this research has been financially supported by Galatasaray University Research Fund, with the project number FBA-2022-1091.

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Authors and Affiliations

  1. Galatasaray University, Ciragan Cad., No. 36, 34349, Istanbul, Turkey

    Dilhan İlgün & S. Emre Alptekin

Authors
  1. Dilhan İlgün
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  2. S. Emre Alptekin
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Corresponding author

Correspondence to Dilhan İlgün .

Editor information

Editors and Affiliations

  1. Department of Industrial Engineering, Istanbul Technical University, Istanbul, Turkey

    Cengiz Kahraman

  2. Department of Industrial Engineering, Galatasaray University, Istanbul, Turkey

    A. Cagri Tolga

  3. Department of Industrial Engineering, Istanbul Technical University, Istanbul, Turkey

    Sezi Cevik Onar

  4. Department of Industrial Engineering, Yildiz Technical University, Istanbul, Turkey

    Selcuk Cebi

  5. Department of Industrial Engineering, Istanbul Technical University, Istanbul, Turkey

    Basar Oztaysi

  6. Department of Industrial Engineering, Istanbul Technical University, Istanbul, Turkey

    Irem Ucal Sari

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İlgün, D., Alptekin, S.E. (2022). A Capacity Allocation Model for Air Cargo Industry: A Case Study. In: Kahraman, C., Tolga, A.C., Cevik Onar, S., Cebi, S., Oztaysi, B., Sari, I.U. (eds) Intelligent and Fuzzy Systems. INFUS 2022. Lecture Notes in Networks and Systems, vol 505. Springer, Cham. https://doi.org/10.1007/978-3-031-09176-6_49

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