Incorporating pricing decisions into the stochastic dynamic fleet management problem

Huseyin Topaloglu, Warren Buckler Powell

Research output: Contribution to journalArticlepeer-review

30 Scopus citations


This paper shows how to coordinate the decisions on pricing and fleet management of a freight carrier. We consider a setting where the carrier announces its prices at the beginning of a certain time horizon and the load arrivals over this horizon depend on the announced prices. Assuming that the vehicle fleet is managed according to a particular class of fleet management models, we present a tractable method to obtain sample path-based directional derivatives of the objective function with respect to the prices. We use this information to search for a good set of prices. Numerical experiments show that our approach yields high-quality solutions.

Original languageEnglish (US)
Pages (from-to)281-301
Number of pages21
JournalTransportation Science
Issue number3
StatePublished - Aug 2007

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Transportation


  • Dynamic fleet management
  • Dynamic programming
  • Pricing


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