Robust transit network design with stochastic demand considering development density

This paper analyzes the influence of urban development density on transit network design with stochastic demand by considering two types of services, rapid transit services, such as rail, and flexible services, such as dial-a-ride shuttles. Rapid transit services operate on fixed routes and dedicated lanes, and with fixed schedules, whereas dial-a-ride services can make use of the existing road network, hence are much more economical to implement. It is obvious that the urban development densities to financially sustain these two service types are different. This study integrates these two service networks into one multi-modal network and then determines the optimal combination of these two service types under user equilibrium (UE) flows for a given urban density. Then we investigate the minimum or critical urban density required to financially sustain the rapid transit line(s). The approach of robust optimization is used to address the stochastic demands as captured in a polyhedral uncertainty set, which is then reformulated by its dual problem and incorporated accordingly. The UE principle is represented by a set of variational inequality (VI) constraints. Eventually, the whole problem is linearized and formulated as a mixed-integer linear program. A cutting constraint algorithm is adopted to address the computational difficulty arising from the VI constraints. The paper studies the implications of three different population distribution patterns, two CBD locations, and produces the resultant sequences of adding more rapid transit services as the population density increases.     

The impact of strategic management and fleet planning on airline efficiency - A random effects Tobit model based on DEA efficiency scores

As a result of the liberalisation of airline markets; the strong growth of low cost carriers; the high volatility in fuel prices; and the recent global financial crisis, the cost pressure that airlines face is very substantial. In order to survive in these very competitive environments, information on what factors impact on costs and efficiency of airlines is crucial in guiding strategic change. To evaluate key determinants of 58 passenger airlines’ efficiency, this paper applies a two-stage Data Envelopment Analysis (DEA) approach, with partially bootstrapped random effects Tobit regressions in the second stage. Our results suggest that the effects of route optimisation, in the sense of average stage length of the fleet, are limited to airline technical efficiency. We show that airline size and key fleet mix characteristics, such as aircraft size and number of different aircraft families in the fleet, are more relevant to successful cost management of airlines since they have significant impacts on all three types of airline efficiency: technical, allocative and, ultimately, cost efficiency. Our results also show that despite the fuel saving benefits of younger aircraft, the age of an airline’s fleet has no significant impact on its technical efficiency, but does have a positive impact on its allocative and cost efficiency.     

Robust identification of air traffic flow patterns in Metroplex terminal areas under demand uncertainty

Multi-Airport Systems (MAS), or Metroplexes, serve air traffic demand in cities with two or more airports. Due to the spatial proximity and operational interdependency of the airports, Metroplex airspaces are characterized by high complexity, and current system structures fail to provide satisfactory utilization of the available airspace resources. In order to support system-level design and management towards increased operational efficiency in such systems, an accurate depiction of major demand patterns is a prerequisite. This paper proposes a framework for the robust identification of significant air traffic flow patterns in Metroplex systems, which is aligned with the dynamic route service policy for the effective management of Metroplex operations. We first characterize deterministic demand through a spatio-temporal clustering algorithm that takes into account changes in the traffic flows over the planning horizon. Then, in order to handle uncertainties in the demand, a Distributionally Robust Optimization (DRO) approach is proposed, which takes into account demand variations and prediction errors in a robust way to ensure the reliability of the demand identification. The DRO-based approach is applied on pre-tactical (i.e. one-day planning) as well as operational levels (i.e. 2-h rolling horizon). The framework is applied to Time Based Flow Management (TBFM) data from the New York Metroplex. The framework and results are validated by Subject Matter Experts (SMEs).     

Multi-period planning of closed-loop supply chain with carbon policies under uncertainty

Climate change and greenhouse gases emissions have caused countries to implement various carbon regulatory mechanisms in some industrial sectors around the globe to curb carbon emissions. One effective method to reduce industry environmental footprint is the use of a closed-loop supply chain (CLSC). The decision concerning the design and planning of an optimal network of the CLSC plays a vital role in determining the total carbon footprint across the supply chain and also the total cost. In this context, this research proposes an optimization model for design and planning a multi-period, multi-product CLSC with carbon footprint consideration under two different uncertainties. The demand and returns uncertainties are considered by means of multiple scenarios and uncertainty of carbon emissions due to supply chain related activities are considered by means of bounded box set and solve using robust optimization approach. The model extends further to investigate the impact of different carbon policies such as including strict carbon cap, carbon tax, carbon cap-and-trade, and carbon offset on the supply chain strategic and operational decisions. The model captures trade-offs that exist among supply chain total cost and carbon emissions. Also, the proposed model optimizes both supply chain total cost and carbon emissions across the supply chain activities. The numerical results reveal some insightful observations with respect to CLSC strategic design decisions and carbon emissions under various carbon policies and at the end we highlighted some managerial insights.     

A reliability‐based traffic assignment model for multi‐modal transport network under demand uncertainty

In densely populated and congested urban areas, the travel times in congested multi‐modal transport networks are generally varied and stochastic in practice. These stochastic travel times may be raised from day‐to‐day demand fluctuations and would affect travelers' route and mode choice behaviors according to their different expectations of on‐time arrival. In view of these, this paper presents a reliability‐based user equilibrium traffic assignment model for congested multi‐modal transport networks under demand uncertainty. The stochastic bus frequency due to the unstable travel time of bus route is explicitly considered. By the proposed model, travelers' route and mode choice behaviors are intensively explored. In addition, a stochastic state‐augmented multi‐modal transport network is adopted in this paper to effectively model probable transfers and non‐linear fare structures. A numerical example is given to illustrate the merits of the proposed model. Copyright © 2012 John Wiley & Sons, Ltd.     

Optimal transit fare in a bimodal network under demand uncertainty and bounded rationality

This paper investigates the optimal transit fare in a simple bimodal transportation system that comprises public transport and private car. We consider two new factors: demand uncertainty and bounded rationality. With demand uncertainty, travelers are assumed to consider both the mean travel cost and travel cost variability in their mode choice decision. Under bounded rationality, travelers do not necessarily choose the travel mode of which perceived travel cost is absolutely lower than the one of the other mode. To determine the optimal transit fare, a bi‐level programming is proposed. The upper‐level objective function is to minimize the mean of total travel cost, whereas the lower‐level programming adopts the logit‐based model to describe users' mode choice behaviors. Then a heuristic algorithm based on a sensitivity analysis approach is designed to solve the bi‐level programming. Numerical examples are presented to illustrate the effect of demand uncertainty and bounded rationality on the modal share, optimal transit fare and system performance. Copyright © 2013 John Wiley & Sons, Ltd.     

Regional climate impact of aerosols emitted by transportation modes and potential effects of policies on demand and emissions

The transportation system is one of the main sectors with significant climate impact. In the U.S. it is the second main emitter of carbon dioxide. Its impact in terms of emission of carbon dioxide is well recognized. But a number of aerosol species have a non-negligible impact. The radiative forcing due to these species needs to be quantified. A radiative transfer code is used. Remote sensing data is retrieved to characterize different regions. The radiative forcing efficiency for black carbon are 396 ± 200 W/m²/AOD for the ground mode and 531 ± 190 W/m²/AOD for the air transportation, under clear sky conditions. The radiative forcing due to contrail is 0.14 ± 0.06 W/m² per percent coverage. Based on the forcing from the different species emitted by each mode of transportation, policies may be envisioned. These policies may affect demand and emissions of different modes of transportation. Demand and fleet models are used to quantify these interdependencies. Depending on the fuel price of each mode, mode shifts and overall demand reduction occur, and more fuel efficient vehicles are introduced in the fleet at a faster rate. With the introduction of more fuel efficient vehicles, the effect of fuel price on demand is attenuated. An increase in fuel price of 50 cents per gallon, scaled based on the radiative forcing of each mode, results in up to 5% reduction in emissions and 6% reduction in radiative forcing. With technologies, significant reduction in climate impact may be achieved.     

Robust Wardrop’s user equilibrium assignment under stochastic demand and supply: Expected residual minimization approach

Various models of traffic assignment under stochastic environment have been proposed recently, mainly by assuming different travelers’ behavior against uncertainties. This paper focuses on the expected residual minimization (ERM) model to provide a robust traffic assignment with an emphasis on the planner’s perspective. The model is further extended to obtain a stochastic prediction of the traffic volumes by the technique of path choice approach. We show theoretically the existence and the robustness of the ERM solution. In addition, we employ an improved solution algorithm for solving the ERM model. Numerical experiments are carried out to illustrate the characteristics of the proposed model, by comparing with other existing models.     

Build-to-order supply chain network design under supply and demand uncertainties

Supply chain disruptions are unintended, unwanted situations resulting in a negative supply chain performance. We study the supply chain network design under supply and demand uncertainty with embedded supply chain disruption mitigation strategies, postponement with downward substitution, centralized stocking and supplier sourcing base. We designed an integrated supply-side, manufacturing and demand-side operations network in such that the total expected operating cost is minimized. We modeled it in a deterministic equivalent formulation. An L-shaped decomposition with an additional decomposition step in the master problem is proposed. The computational results showed that parallel sourcing has a cost advantage against single sourcing under supply disruptions. In addition, the build-to-order (BTO) manufacturing mitigation process has its greatest impact with high variations on demands and is integrated with the component downward substitution. Lastly, the manufacturer needs to order differentiated components to cover its requirement for maximal product demand to prevent the loss of sale, even with fewer modules in stock.     

Pick‐up locations and bus allocation for transit‐based evacuation planning with demand uncertainty

This paper develops a decision‐support model for transit‐based evacuation planning under demand uncertainty. Demand uncertainty refers to the uncertainty associated with the number of transit‐dependent evacuees. A robust optimization model is proposed to determine the optimal pick‐up points for evacuees to assemble, and allocate available buses to transport the assembled evacuees between the pick‐up locations and different public shelters. The model is formulated as a mixed‐integer linear program and is solved via a cutting plane scheme. The numerical example based on the Sioux Falls network demonstrates that the robust plan yields lower total evacuation time and is reliable in serving the realized evacuee demand. Copyright © 2012 John Wiley & Sons, Ltd.     

Development and validation of energy demand uncertainty model for electric city buses

The prediction of electric city bus energy demand is crucial in order to estimate operating costs and to size components such as the battery and charging systems. Unfortunately, there are unpredictable dynamic factors that can cause variation in the energy demand, particularly concerning driver choices and traffic levels. The impact of these factors on energy demand has been difficult to study since fast computing sufficiently accurate dynamic simulation models have been missing, properly quantified in terms of relevant inputs which contribute to energy demand. The objective is to develop and validate a novel electric city bus model for computing the energy demand, to study the nature and impact of various input factors. The developed equation-based model predicted real-world electric city bus energy consumption within 0.1% error. The most crucial unmeasurable input factors were the driven bus route, the number of stops, the elevation profile, the traffic level and the driving style. This understanding can be used to specify routes and stops for a given electric bus battery capacity. Worst-case scenarios are also necessary for electric bus sizing analysis. The best- and worst-case levels of the crucial factors were identified and with them synthetic best- and worst-case speed profiles were generated to demonstrate their effect to the energy demand. While the measured nominal consumption was 0.70 kWh/km, the computed range of variation was between 0.19 kWh/km and 1.34 kWh/km. For design sizing purposes, an electric city bus can have a broad range of possible energy consumption rates due to mission condition variations.     

Estimating flight-level price elasticities using online airline data: A first step toward integrating pricing,demand, and revenue optimization

We estimate flight-level price elasticities using a database of online prices and seat map displays. In contrast to market-level and route-level elasticities reported in the literature, flight-level elasticities can forecast responses in demand due to day-to-day price fluctuations. Knowing how elasticities vary by flight and booking characteristics and in response to competitors’ pricing actions allows airlines to design better promotions. It also allows policy makers the ability to evaluate the impacts of proposed tax increases or time-of-day congestion pricing policies. Our elasticity results show how airlines can design optimal promotions by considering not only which departure dates should be targeted, but also which days of the week customers should be allowed to purchase. Additionally, we show how elasticities can be used by carriers to strategically match a subset of their competitors’ sale fares. Methodologically, we use an approach that corrects for price endogeneity; failure to do so results in biased estimates and incorrect pricing recommendations. Using an instrumental variable approach to address this problem we find a set of valid instruments that can be used in future studies of air travel demand. We conclude by describing how our approach contributes to the literature, by offering an approach to estimate flight-level demand elasticities that the research community needs as an input to more advanced optimization models that integrate demand forecasting, price optimization, and revenue optimization models.     

Asymmetric responses of highway travel demand to changes in fuel price: An explanation via fuel price uncertainty

Previous research has examined asymmetric effects of fuel price uncertainty on energy demand. If we consider that energy demand is related to travel demand, the changes in fuel prices may have asymmetric effects on highway travel demand via fuel price uncertainty. In other words, when in general fuel price is steadily rising, the highway traffic volume decreases by a small percentage. On the other hand, the highway traffic volume increases by a large percentage when fuel prices are falling. We hypothesize that the uncertainty in fuel prices generates this kind of asymmetric effect on highway traffic volume in Korea. We use the Korean monthly fuel price and highway traffic volume data from 2001 to 2009, and define the intra-month (weekly) fuel price changes as monthly fuel price volatility which is a proxy for monthly fuel price uncertainty. We found that the direction of the change in fuel prices had asymmetric effects on highway travel demand and that the fuel price uncertainty led drivers to respond asymmetrically to the changes in fuel prices.     

Integrating parking behaviour in activity-based travel demand modelling: Investigation of the relationship between parking type choice and activity scheduling process

Traditionally, the parking choice/option is considered to be an important factor in only in the mode choice component of a four-stage travel demand modelling system. However, travel demand modelling has been undergoing a paradigm shift from the traditional trip-based approach to an activity-based approach. The activity-based approach is intended to capture the influences of different policy variables at various stages of activity-travel decision making processes. Parking is a key policy variable that captures land use and transportation interactions in urban areas. It is important that the influences of parking choice on activity scheduling behaviour be identified fully. This paper investigates this issue using a sample data set collected in Montreal, Canada. Parking type choice and activity scheduling decision (start time choice) are modelled jointly in order to identify the effects of parking type choice on activity scheduling behaviour. Empirical investigation gives strong evidence that parking type choice influences activity scheduling process. The empirical findings of this investigation challenge the validity of the traditional conception which considers parking choice as exogenous variable only in the mode choice component of travel demand models.     

Robust single-track train dispatching model under a dynamic and stochastic environment: A scenario-based rolling horizon solution approach

After a major service disruption on a single-track rail line, dispatchers need to generate a series of train meet-pass plans at different decision times of the rescheduling stage. The task is to recover the impacted train schedule from the current and future disturbances and minimize the expected additional delay under different forecasted operational conditions. Based on a stochastic programming with recourse framework, this paper incorporates different probabilistic scenarios in the rolling horizon decision process to recognize (1) the input data uncertainty associated with predicted segment running times and segment recovery times and (2) the possibilities of rescheduling decisions after receiving status updates. The proposed model periodically optimizes schedules for a relatively long rolling horizon, while selecting and disseminating a robust meet-pass plan for every roll period. A multi-layer branching solution procedure is developed to systematically generate and select meet-pass plans under different stochastic scenarios. Illustrative examples and numerical experiments are used to demonstrate the importance of robust disruption handling under a dynamic and stochastic environment. In terms of expected total train delay time, our experimental results show that the robust solutions are better than the expected value-based solutions by a range of 10-30%.     

The transit network design problem with elastic demand and internalisation of external costs: An application to rail frequency optimisation

In this paper we examine the transit network design problem under the assumption of elastic demand, focusing on the problem of designing the frequencies of a regional metro. In this problem, investments in transit services have appreciable effects on modal split. Neglecting demand elasticity can lead to solutions that may not represent the actual objectives of the design. We propose four different objective functions that can be adopted to assume demand as elastic, considering the costs of all transportation systems (car, bus and rail) as well as the external costs, and we define the constraints of the problem. Heuristic and meta-heuristic solution algorithms are also proposed. The models and algorithms are tested on a small network and on a real-scale network.     

Train scheduling for minimizing passenger waiting time with time-dependent demand and skip-stop patterns: Nonlinear integer programming models with linear constraints

This paper focuses on how to minimize the total passenger waiting time at stations by computing and adjusting train timetables for a rail corridor with given time-varying origin-to-destination passenger demand matrices. Given predetermined train skip-stop patterns, a unified quadratic integer programming model with linear constraints is developed to jointly synchronize effective passenger loading time windows and train arrival and departure times at each station. A set of quadratic and quasi-quadratic objective functions are proposed to precisely formulate the total waiting time under both minute-dependent demand and hour-dependent demand volumes from different origin–destination pairs. We construct mathematically rigorous and algorithmically tractable nonlinear mixed integer programming models for both real-time scheduling and medium-term planning applications. The proposed models are implemented using general purpose high-level optimization solvers, and the model effectiveness is further examined through numerical experiments of real-world rail train timetabling test cases.     

Optimization of transport investment and pricing policies: the role of transport pricing in network design

This paper investigates the role of transport pricing in network design and describes two facts about flow pattern in a transportation system. The first, illustrated by an example of Braess paradox, is that adding a new link to the network does not necessarily minimize the total travel time. The second is that introducing of appropriate toll pricing may reduce not only the total network time but also the travel time for each individual traveller. It follows with the investigations of different system objectives and different pricing policies (only toll pricing and distance‐based pricing are considered), and shows how they affect the system performance and flow pattern. Lastly, a systematic optimization process is proposed for integrated planning of transport network and pricing policies.     

Empirical estimation of price and income elasticities of air cargo demand: The case of Hong Kong

This paper estimates the price and income elasticities of air cargo demand and examines how they may change after the 2008 financial crisis. Using a set of time series data, we simultaneously estimate the aggregated demand and supply functions of air cargo at Hong Kong International Airport (HKIA). We find that during the entire sampling period of 2001–2013, the price elasticity for air cargo transport demand at HKIA ranges from −0.74 to −0.29, suggesting that air cargo demand in Hong Kong reacts negatively to price (as expected) but does not appear to be very sensitive to price. The income elasticity ranges from 0.29 to 1.47 and appears sensitive to seasonality adjustment approaches. However, in terms of the speed of changes, air cargo demand changes much faster than overall economy, indicating the presence of a pro-cyclical pattern of air cargo traffic with respect to the overall economy. Our analysis shows that air cargo demand becomes more sensitive to changes in both price and income after 2008.     

Long-term impact of the Shinkansen on rail and air demand: analysis with data from Northeast Japan

This paper analyses how the high-speed rail construction in Northeast Japan (Tohoku) has affected total demand and interregional travel patterns. We use annual interregional passenger data from 1989 to 2012 and apply regression analysis with the demand between Tokyo and the Tohoku prefectures as the dependent variable. We distinguish particularly between the ‘Full-’ and the ‘Mini-’ Shinkansen, where the latter are branch services running with reduced speed. We find that the ‘Full-Shinkansen’ quickly increases rail and total public transport trips and generates additional rail demand year on year. The ‘Mini-Shinkansen’ impacts are less pronounced. Furthermore, our analysis shows that the Shinkansen has shifted some demand from air to rail once it started operation and increased rail share gradually. We therefore suggest that predictions of demand impacts should carefully distinguish immediate from gradual impacts. We also discuss differences in regional demand in that not all prefectures have gained equally from Shinkansen construction.