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| 12:30pm - 1:30pm | Registration |
| 1:30pm - 1:45pm | Welcome Note; Greg R. Reinhardt (UPS), AGIFORS Cargo Study Group Chair |
| 1:45pm - 2:45pm | Introductory Section |
| 2:45pm - 3:00pm | Coffee Break |
| 3:00pm - 3:35pm | “Shippers and Forwarders: The Collective Need in the New Millenium”; Joseph L. Rosiek (Unisys) |
| 3:35pm – 4:10pm | “British Airways: Investing in the future of Cargo”; Hilarie Sutlieff (British Airways) |
| 4:10pm – 4:35pm | “A Simulation Model of Airport Ramps and Taxiways”; Swain Ottman (UPS) |
| 4:35pm – 5:10pm | “Revenue Gains from Revenue Management for ad hoc Shipments”; Mikael Weigelt (PROS) |
| 6:00pm - 11:00pm | Social Event: Walking Tour |
| 8:00am – 9:00am | Breakfast & Registration |
| 9:00am – 9:40am | “Cargo Capacity Forecasting Models for Passenger Carriers”; Bejugum V. Rao (SABRE) |
| 9:40am – 10:20am | “The Impact of Forecast Entity on Bid Price
Revenue Management Systems with Applications in Cargo”;
E. Andrew Boyd (PROS) |
| 10:20am – 10:40am | Coffee Break |
| 10:40am – 11:20am | “Package Flow Network Model”; Keith Ware (UPS) |
| 11:20am – 12:00pm | “An Algorithm for On-Line Cargo Routing”; Dirk Guenther (SABRE) |
| 12:00pm – 1:30pm | Group Lunch |
| 1:30pm – 2:30pm | Panel Discussion I: “Cargo Revenue Management: Current Status and Future Directions” |
| 2:30pm – 3:00pm | Coffee Break |
| 3:00pm – 4:00pm | Panel Discussion II: “Cargo Ground Operations” |
| 4:00pm – 4:30pm | Closing session: Feedback and Venue/hosting for next-year meeting |
| In the face of increasing competition in the air freight industry British Airways has introduced a major change programme. The programme covers the way we do business across all the network and embraces data quality and improved processes. As a centrepiece we are investing in a new warehouse at the Heathrow hub. The new facility will increase capacity but, more importantly, it introduces new automated handling of freight. These changes will make the operation safer, more efficient and give the flexibility needed to respond to future demand. |
| This paper describes the development of a discrete-event simulation model of the United Parcel Service Airlines aircraft parking ramps and taxiways of the Louisville International Airport in Louisville, Kentucky. The simulation model is used to evaluate various aircraft parking plans and departure schedules. The objectives are to reduce trafiic congestion, taxi times, and rollout wait times. |
| Part of an overall cargo revenue management strategy is the development of a control methodology for making accept/reject decisions for ad hoc shipments. Simulations are presented demonstrating that significant revenue gains are achievable with relatively simple methods. |
| Besides day-to-day and seasonal variations, cargo capacity forecasts for passenger/cargo combination carriers depend on payload, mail loads, passenger loads, and passenger bag loads. Cargo capacity forecasting is further complicated by the multi-dimensional nature of cargo, i.e., weight, volume, and positions. Accurate capacity forecasts are important inputs to revenue-mix and overbooking models of cargo revenue management. In this presentation, we will demonstrate that using certain forecasting processes and mathematical models, it is possible to obtain accurate capacity forecasts. |
| A consideration in the development of revenue management systems is the notion of how the attribute space for arrivals should be partitioned. For example, if cargo arrivals are being forecast by weight/volume combinations, how should the weight/volume space be partitioned in order to achieve the best forecasts? We show that in a mathematically limiting sense all partitions are equivalent. The practical implications of the result are discussed at length. |
| This problem consists of determining an intermodal movement schedule and a set of flows using this schedule which will minimize the cost of delivering a given set of volume movement requirements. The solution to this problem will describe the legs UPS schould fly/drive, which aircraft feelt type should be assigned to each of the flight legs, and how packages should be routed through the resulting transportation network. The simultaneous Next and Second Day problem oer a one-week planning horizon is huge, with millions of potential movement legs and mollions of commodities. The development and formulation of the algorithm requires experimentation, numerous approaches and specialized mathematical code development. |
| Cargo routing plays an important role in the cargo business. In general, customers specify only an origin-destination-pair, shipment characteristics and the level of service. It is the airline's opportunity and obligation to assign a route to each accepted shipment. The routing often has to be done on-line as the customer waits on the phone. We present an algorithm that efficiently finds routes that best meet a customer's specifications. In this context, we discuss different quality measures for routes. Computational results are given showing the performance of our algorithm applied to the entire OAG. |
| In is a common belief that yield management in
the passenger business has contributed significantly to the profitability
of many airlines over years. Convinced with the passenger yield management
belly cargo carriers as well as freighter airlines are turning their attention
to profitable loading of their cargo capacities. Most of the airlines
are either initiating first generation cargo revenue management practices
or enhancing their current revenue management processes with next generation
models.
However, the extension of revenue management concepts from passenger business to air cargo business is a non-trivial exercise. Unlike passengers, Cargo is multi-dimensional, weight, volume, and positions. Cargo capacity for passenger/cargo combination airlines depends on passenger loads and passenger bag loads. Product distribution channels for cargo products are different from those of passenger business. The organizational changes required to implement the revenue management system can be very difficult. Objectives of this panel discussion is
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| The Cargo Airline can make money or lose money on the ground, what will it be. The lack of resources and the pressures placed upon the carrier for visibility and speed of service can create havoc if not orchestrated properly. An area where Operations Research becomes an applied science in order for the Airline to operate efficiently and make money. The panel will discuss this application and the different tool sets to make it happen. Do not miss this exciting time. |
| The purpose of this section is to get to know each other. Each participant will briefly introduce himself/herself, give a short description of his/her past work in the area and state his/her expectations regarding this study group meeting. |
| Companies | Participants |
| American Airlines | Nicholas Godbey |
| Britich Airways | Hilarie Sutlieff |
| Continental Airlines | Jennifer Deguzman
Shauna Meyer |
| Delta Airlines | Michael Cain
Chris De Wolff Libby Williams |
| El-Al Airlines | Galit Rosenblatt |
| IBM | Russell Rushmeier |
| KLM Royal Dutch Airlines | Wouter Couzy |
| PROS Strategic Solutions | Andy Boyd
Shankar Sivaramakrishnan Mikael Weigelt |
| SABRE Technology Solutions | Dirk Guenther
Raja Kasilingam Beju Rao Barry Smith Jimmy Walter |
| Talus | William Niefadlik
Brad Smallwood |
| TransSolutions | Cenk Tunasar |
| United Parcel Service Airlines | Swain Ottman
Gregory (Greg) R. Reinhardt Keith Ware |
| Unisys | Joseph L. Rosiek |
The entire package includes the following:
Note: This is a joint event with Schedule and
Strategic Planning Study Group.
Friday Night River Cruise
All participants are invited to join a River Cruise
Friday night. The cruise is part of the social program of the AGIFORS Symposium.
The cost of the cruise is NOT included in the registration fee. More details
about the cruise will be available at the conference hotel.
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May 13th, 1999 Dirk Guenther/Beju Rao