Optimizing Large On-demand Transportation Systems

32 Pages Posted: 8 Jul 2019 Last revised: 8 Oct 2019

See all articles by Shukai Li

Shukai Li

Peking University

Qi Luo

University of Michigan at Ann Arbor - Department of Industrial and Operations Engineering

Robert Hampshire

University of Michigan at Ann Arbor - Transportation Research Institute

Date Written: April 29, 2019

Abstract

On-demand transportation systems (OTS) are increasingly popular worldwide. Modeling these systems as closed queueing networks (CQN) or semi-open queueing networks (SOQN) makes optimizations tractable, and controls robust to input data. Prior literature has obtained mean performance measures (e.g., vehicle availability) by decomposing OTS into networks for which product-form equilibrium distributions exist. However, such an approach is unsatisfactory in terms of computational complexity for large networks such as micromobility networks. This paper presents an alternative approach to obtaining mean performance measures with mild computational complexity and high fidelity. Leveraging this approach, we explore day-to-day vehicle redistribution and network pricing problems for OTS operations in New York City. These results support the potential for rebuilding a more accessible and sustainable OTS, which is of particular significance as multimodal transport continues to emerge globally.

Keywords: Production, Manufacturing, Transportation and Logistics, On-demand Transportation Systems, Queueing Networks, Vehicle Rebalancing

Suggested Citation

Li, Shukai and Luo, Qi and Hampshire, Robert, Optimizing Large On-demand Transportation Systems (April 29, 2019). Available at SSRN: https://ssrn.com/abstract=3379931 or http://dx.doi.org/10.2139/ssrn.3379931

Shukai Li

Peking University ( email )

Beijing, 100871
China

Qi Luo (Contact Author)

University of Michigan at Ann Arbor - Department of Industrial and Operations Engineering ( email )

1205 Beal Avenue
Ann Arbor, MI 48109
United States

Robert Hampshire

University of Michigan at Ann Arbor - Transportation Research Institute ( email )

2901 Baxter Road
Ann Arbor, MI 48109
United States

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