Fuzzy rule-based demand forecasting for dynamic pricing of a maritime company

Abstract

In this study, the pricing problem of a transportation service provider company is considered. Our goal is to find optimal prices by using probabilistic dynamic programming. A fuzzy IF-THEN-rule based system is used to identify the demand levels under different prices and other characteristics of the journey. The results obtained by optimal price policies show that the revenue increases by applying dynamic pricing policy instead of fixed pricing. Thus, the diversification of pricing policies under different conditions is beneficial for the company. (C) 2014 Elsevier B.V. All rights reserved.