Optimum management of the network of city bus routes based on a stochastic dynamic model

Abstract

In this paper, we develop a stochastic dynamic model for the network of city bus routes subject to resource and other practical constraints. We define an objective function on the basis of four terms: fuel cost, operating cost, customers waiting time, and revenue of the bus company. Hereafter, an optimization problem is formulated and solved by use of nonlinear integer programming. If the technique presented here is implemented, it is expected to boost the bus company's revenue, reduce waiting time and therefore promote customer satisfaction. A series of numerical experiments is carried out and the corresponding optimization problems are addressed giving the optimal number of buses allocated to each of the bus routes in the network. Since the dynamic model proposed here can be applied to any network of bus routes, it is believed that the procedure developed in this paper is of great potential for both the city bus company and the customers.