The Scatter Search Based Algorithm to Revenue Management Problem in Broadcasting Companies

• Main Authors: Pishdad, Arezoo, Sharifyazdi, Mehdi, Karimpour, Reza
• Format: Conference Proceeding
• Language: English
• ISSN: 0094-243X
• DOI: 10.1063/1.3241466

The problem under question in this paper which is faced by broadcasting companies is how to benefit from a limited advertising space. This problem is due to the stochastic behavior of customers (advertiser) in different fare classes. To address this issue we propose a mathematical constrained nonlinear multi period model which incorporates cancellation and overbooking. The objective function is to maximize the total expected revenue and our numerical method performs it by detennming the sales limits for each class of customer to present the revenue management control policy. Scheduling the advertising spots in breaks is another area of concern and we consider it as a constraint in our model. In this paper an algorithm based on Scatter search is developed to acquire a good feasible solution. This method uses simulation over customer arrival and in a continuous finite time horizon [0, T]. Several sensitivity analyses are conducted in computational result for depicting the effectiveness of proposed method. It also provides insight into better results of considering revenue management (control policy) compared to 'no sales limit' policy in which sooner demand will served first.