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Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, Chile August 11, 2006

Outline 1 Introduction 2 The Routing Problems 3 Final Comments

Work Team Work Team Mo Bazaraa (Georgia Institute of Technology) Emilie Dana (ILOG Inc.) Faram Engineer (Georgia Institute of Technology) (Universidad de Chile) Renan Garcia (Georgia Institute of Technology) Marcos Goycoolea (Universidad Adolfo Ibañes) Zonghau Gu (ILOG Inc.) Alex Khmelnitsky (DayJet) George Nemhauser (Georgia Institute of Technology) Martin Savelsbergh (Georgia Institute of Technology) Eugene Traits (DayJet)

Air transport today Per-Seat, On-Demand Jet Services History and Current Situation Security delays and flight delays. Fixed schedules of established air lines. Hub-and-spoke network configurations. New engine technologies, highly fuel efficient. New cheap small jet planes for 3-5 passengers. Spare capacity on regional airports.

Air transport today The Eclipse 500

Air transport today The Eclipse 500 Crew: 2 pilots Cruise speed: 694Km/hr Range: 2370Km Maximum altitude: 12496m Passenger Capacity: 3 passengers

Company and Business Model DayJet... It s about time Per-Seat, On-Demand Jet Services How to Keep Air Transportation Moving at the Speed of Business

Company and Business Model Business Model External factors: On-line demand. Flexible schedules. Last minute coach fares. High service quality. Wide range coverage. Internal factors: Dynamic route creation. Fully integrated logistic management. Passenger aggregation.

Optimization Problems Optimization Problems On-line accept/reject problem. Optimal routing of accepted clients. Location of home bases for planes. Revenue Management. Disruption Recovery. Maintenance. Demand Estimation.

Optimization Problems Optimization Problems Accept/reject Problem Given a list of accepted requests, and a new request, find a feasible itinerary that cover all requests. Optimal Routing Given a list of accepted requests, find a minimum cost feasible itinerary covering all accepted requests.

Modeling the Problem Flight Requests Origin. Destination. Earliest departure time. Latest arrival time. Number of passengers. Total weight.

Modeling the Problem Feasible Itineraries Two working crews (morning and evening shift). Each crew starts and finish in its home base. No passenger makes more than one intermediary stop. No more than 3 passengers on-board. No crew flight for more than 8 hours. No crew works for more than 11 hours. Total weight of the plane within security limits.

Modeling the Problem A Multicommodity flow model with side constraints Nodes - Define events that characterize a plane itinerary. Take in a passenger. Drop of a passenger. Flight from airport A to airport B. Wait at some airport A. Edges - Connect nodes that might be part of a feasible/optimal itinerary.

Modeling the Problem A Multicommodity flow model with side constraints

Modeling the Problem An Example Airport a t=1 S(a, 1) t=2 S(a, 2) t=3 S(a, 3) G(a, b) G(a, c) G(a, b) G(a, c) G(a, c) DL(1) DL(2) DL(1) DL(2) DL(2) IL(2) IL(2) Airport b t=4 S(b, 4) t=5 S(b, 5) t=6 S(b, 6) G(b, c) G(b, c) G(b, c) DL(3) DL(3) DL(3) Airport c t=7 S(c, 7) t=8 S(c, 8) t=9 S(c, 9) t=10 S(c, 10)

Modeling the Problem Two sample itineraries Airport a t=1 S(a, 1) t=2 S(a, 2) t=3 S(a, 3) G(a, b) G(a, c) G(a, b) G(a, c) G(a, c) DL(1) DL(2) DL(1) DL(2) DL(2) IL(2) IL(2) Airport b t=4 S(b, 4) t=5 S(b, 5) t=6 S(b, 6) G(b, c) G(b, c) G(b, c) DL(3) DL(3) DL(3) Airport c t=7 S(c, 7) t=8 S(c, 8) t=9 S(c, 9) t=10 S(c, 10)

How do we reduce the network size? Can we discard (some) optimal solutions? Can we identify edges that do not belong to any optimal solution? Can we use side constraints to discard edges? Can we approximate the full network?

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Rolling Forward Algorithm

The Aggregation Algorithm A C A C A C M D D D B (a) E B (b) E B (c) E Use a low degree node and replace it by all combination edges. Use side constraints to eliminate some. Strengthen LP relaxation bound.

Flexible Time Discretizations Use regular discretization. Allow for different discretization per airport. Allow for non-homogeneous time discretization. Can reduce the size of the problem by a factor of 7-8. The price of larger discretizations (with special points) is only about 2-3%.

Reducing the network size Instance Initial Graph Reduced Graph Nodes Edges Nodes % Edges % R1Y1Q4B 166336 469149 10.93% 66.94% 171613 485399 10.97% 67.01% 175245 495579 10.89% 66.92% R1Y1Q3A 59649 166213 12.16% 68.69% 58933 160653 11.84% 67.64% 59437 164120 11.87% 67.34% R1Y1Q2C 15990 43421 12.01% 67.57% 15780 43356 12.18% 66.77% 16408 44927 12.01% 67.52%

Solving Large Scale Problems Solving Large Scale Problems The model can efficiently solve small problems (3-14 airplanes). Expected number of planes: 300-1000 planes. Can write down the model for 200 planes. Local Search approach. Trivially parallelizable. Asynchronous parallel model (master-worker approach).

Computational Results Computational Results 10 CPU, 4 hours (wall time) flights deadhead clients flight Imp. time 2667 696 2572 208720 8.4% 2523 637 2597 188289 5.3% 2495 602 2575 187087 5.0% 10 CPU, 6 hours (wall time) flights deadhead clients flight Imp. time 2637 667 2572 191091 9.6% 2500 614 2597 178277 6.0% 2468 583 2575 177667 5.8%

Final Comments Optimization can help solve large instances. Necessary to simplify the problem. Identify inactive constraints. Integrate scheduling and maintenance. Many related problems remain open.