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Show or no show: modelling for the inventory management of an airline industry in Malaysia

This paper studies on the inventory management of an airline industry in Malaysia. The industry is aware that no shows are inevitable when handling the passengers on the departure day. Therefore, the overbooking process has been introduced to cope with the issue and aimed to improve the flight optim...

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Main Authors: Lee, Lai Soon, Seow, Hsin Vonn, Abd Halim, Siti Nur’azhiimah, Fitrianto, Anwar, Shitan, Mahendran
Format: Article
Language:English
Published: International Knowledge Press 2016
Online Access:http://psasir.upm.edu.my/id/eprint/53816/1/Show%20or%20no%20show.pdf
http://psasir.upm.edu.my/id/eprint/53816/
http://www.ikpress.org/abstract/5729
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spelling my.upm.eprints.538162018-02-06T05:10:54Z http://psasir.upm.edu.my/id/eprint/53816/ Show or no show: modelling for the inventory management of an airline industry in Malaysia Lee, Lai Soon Seow, Hsin Vonn Abd Halim, Siti Nur’azhiimah Fitrianto, Anwar Shitan, Mahendran This paper studies on the inventory management of an airline industry in Malaysia. The industry is aware that no shows are inevitable when handling the passengers on the departure day. Therefore, the overbooking process has been introduced to cope with the issue and aimed to improve the flight optimization. The main objective for this study is to propose a logit model, a model typically used in Credit Scoring, by applying the logistic regression model approach to predict the passengers’ show-up probability on the departure day. Using the results from the logistic regression, in line with credit scoring analysis, then generate a scorecard as a decision support tool for the inventory analysts in strategizing the inventory of seats of flights and managing the overbooking decision more efficiently. Reviewing the limited literature reviews specifically on the topic, using Credit Scoring techniques to produce the scorecard for predicting a passenger’s show-up rate is a new novel approach to the overbooking problem of the airline industry. This paper is to propose the credit scoring method to help with decision making in the overbooking problem. International Knowledge Press 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/53816/1/Show%20or%20no%20show.pdf Lee, Lai Soon and Seow, Hsin Vonn and Abd Halim, Siti Nur’azhiimah and Fitrianto, Anwar and Shitan, Mahendran (2016) Show or no show: modelling for the inventory management of an airline industry in Malaysia. Journal of Global Economics, Management and Business Research, 7 (3). pp. 171-181. ISSN 2454-2504 http://www.ikpress.org/abstract/5729
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This paper studies on the inventory management of an airline industry in Malaysia. The industry is aware that no shows are inevitable when handling the passengers on the departure day. Therefore, the overbooking process has been introduced to cope with the issue and aimed to improve the flight optimization. The main objective for this study is to propose a logit model, a model typically used in Credit Scoring, by applying the logistic regression model approach to predict the passengers’ show-up probability on the departure day. Using the results from the logistic regression, in line with credit scoring analysis, then generate a scorecard as a decision support tool for the inventory analysts in strategizing the inventory of seats of flights and managing the overbooking decision more efficiently. Reviewing the limited literature reviews specifically on the topic, using Credit Scoring techniques to produce the scorecard for predicting a passenger’s show-up rate is a new novel approach to the overbooking problem of the airline industry. This paper is to propose the credit scoring method to help with decision making in the overbooking problem.
format Article
author Lee, Lai Soon
Seow, Hsin Vonn
Abd Halim, Siti Nur’azhiimah
Fitrianto, Anwar
Shitan, Mahendran
spellingShingle Lee, Lai Soon
Seow, Hsin Vonn
Abd Halim, Siti Nur’azhiimah
Fitrianto, Anwar
Shitan, Mahendran
Show or no show: modelling for the inventory management of an airline industry in Malaysia
author_facet Lee, Lai Soon
Seow, Hsin Vonn
Abd Halim, Siti Nur’azhiimah
Fitrianto, Anwar
Shitan, Mahendran
author_sort Lee, Lai Soon
title Show or no show: modelling for the inventory management of an airline industry in Malaysia
title_short Show or no show: modelling for the inventory management of an airline industry in Malaysia
title_full Show or no show: modelling for the inventory management of an airline industry in Malaysia
title_fullStr Show or no show: modelling for the inventory management of an airline industry in Malaysia
title_full_unstemmed Show or no show: modelling for the inventory management of an airline industry in Malaysia
title_sort show or no show: modelling for the inventory management of an airline industry in malaysia
publisher International Knowledge Press
publishDate 2016
url http://psasir.upm.edu.my/id/eprint/53816/1/Show%20or%20no%20show.pdf
http://psasir.upm.edu.my/id/eprint/53816/
http://www.ikpress.org/abstract/5729
_version_ 1643835494592675840
score 13.211869

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