Extension of Newell's dispatching policy to the case of sensitive demand

Abstract

This paper has extended Newell's dispatching policy to the case of sensitive demand which is characterized by a linear mode split model with two major factors, wait time and transit fare. Three objective functions both with and without vehicle capacity constraint are analyzed, including profit maximization, maximization of a combination of net user benefit and operator profit, and maximization of net user benefit subject to a deficit constraint. Closed‐form solutions associated with various system parameters are obtained. It is shown that under sensitive demand conditions the optimal dispatching rate is approximately proportional to the square root of the total demand rate, if vehicle size is not binding and it is strictly proportional to the total demand rate, if vehicle size is binding. Copyright © 1991 John Wiley & Sons Ltd