An optimization model of cargo space allocation for air cargo agent

Air cargo agent acts as an intermediary between airlines and cargo owners, but its revenue management is still a problem that has not been solved well in practice in China. On the standpoint of air cargo agent, its allocation strategy to cargo owners and booking amount of cargo space from airlines are studied with consideration of both long-term and free stochastic booking requests from cargo owners. A static stochastic programming model of cargo space allocation for air cargo agent under uncertain environment is constructed, and solve with robust optimization approach with a view to assist air cargo agent to determine the appropriate amount of cargo space requested from airlines as well as the allocation strategy, and to achieve revenue maximization.