A multiple period capacitated inventory model for airline fuel management: a case study

• Published in: The Journal of the Operational Research Society Vol. 53; no. 4; pp. 379 - 386
• Main Authors: Zouein, P P, Abillama, W R, Tohme, E
• Format: Journal Article
• Language: English
• Published: Basingstoke Taylor & Francis 01-04-2002; Palgrave Macmillan Press; Palgrave; Taylor & Francis Ltd
• Subjects: air transport; Aircraft; Airline industry; Airlines; Applied sciences; Case studies; Case-Oriented Papers; Cost control; decision support; Decision support systems; Exact sciences and technology; Flight time; Fuel consumption; fuel management; Fuel tanks; Fuels; Inventory control; Linear programming; Mathematical programming; Minimization of cost; Operational research and scientific management; Operational research. Management science; Operations research; Takeoff; Total costs; Vehicular flight; Asia; Middle east; Middle East; Decision support system; Fuel; Operating cost; Inventory control; Linear programming; Air transportation; Planning; Energy management
• ISSN: 0160-5682; 1476-9360
• DOI: 10.1057/palgrave.jors.2601315

One of the major operating cost items of an airline company is fuel, which can amount to approximately 20% of its overall operating cost. This paper presents a decision support model that determines the amount of fuel to be uplifted by a plane at each station along its route over a predetermined planning horizon so as to minimise overall fuel costs. The aforementioned fuel management problem is modelled as a multiple period capacitated inventory problem and solved using linear programming. An example application illustrates the applicability of this model to Middle East Airline's (MEA) operations and summarises the dollar savings obtained by applying it over a one week planning horizon.