An application of a fuzzy knowledge system for air cargo overbooking under uncertain capacity

Overbooking is a yield management policy of to air cargo to sell more cargo than the available capacity to minimize oversale and spoilage cost. In a yield management system of air cargo, roughly 40% of air carrier profit is obtained from overbooking. Thus overbooking is very important for air cargo yield management. However, the work becomes more complicated to evaluate overbooking capacity under uncertain environment. In this paper, an air cargo overbooking method is presented under uncertain environment to determine overbooking capacity. By the method, we are involved in the development of a fuzzy knowledge system based on fuzzy reasoning to solve the air cargo overbooking problem. Finally, a numerical example is illustrated to describe the fuzzy knowledge system.