Optimizing the Profitability and Quality of Service in Carshare Systems Under Demand Uncertainty

Mengshi Lu
Mengshi Lu
[email protected]
Krannert School of Management, Purdue University, West Lafayette, Indiana 47907
Search for more papers by this author
,
Zhihao Chen
Zhihao Chen
[email protected]
Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109
Search for more papers by this author
,
Siqian Shen
Corresponding Author
Siqian Shen
[email protected]
http://orcid.org/0000-0002-2854-163X
Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109
Search for more papers by this author

Mengshi Lu

[email protected]

Krannert School of Management, Purdue University, West Lafayette, Indiana 47907

Search for more papers by this author

Zhihao Chen

[email protected]

Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109

Search for more papers by this author

Siqian Shen

Corresponding Author

Siqian Shen

[email protected]

http://orcid.org/0000-0002-2854-163X

Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109

Search for more papers by this author

Published Online:16 Oct 2017https://doi.org/10.1287/msom.2017.0644

Supplemental Material

msom.2017.0644-sm.pdf (360 KB)

Cited by
- Quality of service metrics for risk-aware car sharing operations with substitution
  Omega, Vol. 143
- Mode selection and pricing strategy for manufacturers in car sharing: the role of dispatch level
  Computers & Industrial Engineering, Vol. 217
- Joint strategic and operational planning of an electric vehicle sharing system under demand uncertainty: A bi-objective risk-averse stochastic programming approach
  Transportation Research Part C: Emerging Technologies, Vol. 187
- The strategic analysis of vehicle parking mode selection for a B2C car sharing platform
  Transportation Research Part E: Logistics and Transportation Review, Vol. 210
- Traditional petrol-fueled and electric mixed logistics vehicle fleet scheduling in urban logistics delivery under demand uncertainty
  Computers & Industrial Engineering, Vol. 216
- Product Sharing: A Threat or an Opportunity for Competing Manufacturers?
  4 December 2025 | Production and Operations Management, Vol. 35, No. 6
- Hybrid Fleet Management and Vehicle Repositioning in Mobility-as-a-Service Operations
  21 October 2025 | Production and Operations Management, Vol. 35, No. 5
- A novel predict-then-optimize method for sustainable bike-sharing management: a data-driven study in China
  20 September 2022 | Annals of Operations Research, Vol. 359, No. 1
- Fleet Repositioning for Vehicle Sharing Systems: Asymptotic Optimality of the Balanced Myopic Policy
  19 June 2025 | Production and Operations Management, Vol. 35, No. 2
- Performance of heterogeneous service strategies for a real-time pricing electric car-sharing system
  1 October 2025 | npj Sustainable Mobility and Transport, Vol. 2, No. 1
- Uncertainties in shared mobility optimization problems: Survey and perspective
  Transportation Research Part E: Logistics and Transportation Review, Vol. 203
- Product line design for the automaker under shared mobility: considering dispatching level and carbon emissions
  Energy, Vol. 335
- A robust satisficing multi-objective optimization approach for bike-sharing systems with heterogeneous user types
  Transportation Research Part E: Logistics and Transportation Review, Vol. 202
- Scale matters – Why the efficiency of free-floating vehicle sharing systems depends on the system’s scale
  Transportation Research Part C: Emerging Technologies, Vol. 178
- Integrated vehicle allocation and relocation for shared micromobility under competition and demand uncertainty
  22 October 2024 | IISE Transactions, Vol. 57, No. 8
- Optimizing strategic and operational decisions of car sharing systems under demand uncertainty and substitution
  Computers & Operations Research, Vol. 180
- It’s All in the Mix: Technology choice between driverless and human-driven vehicles in sharing systems
  European Journal of Operational Research, Vol. 324, No. 3
- A two-stage robust satisficing model for equitable EV-sharing system with parking-charging slots
  19 June 2025 | Transportmetrica A: Transport Science, Vol. 23
- Managing shared electric micromobility systems: Allocation planning and battery swapping
  Transportation Research Part E: Logistics and Transportation Review, Vol. 198
- Real-time vehicle relocation, personnel dispatch and trip pricing for carsharing systems under supply and demand uncertainties
  Transportation Research Part B: Methodological, Vol. 193
- Disruption management for a remanufacturer with dual collection channels
  23 June 2022 | International Journal of Logistics Research and Applications, Vol. 28, No. 1
- Operations Management in the Sharing Economy: Review and New Research Directions
  1 January 2025 | SSRN Electronic Journal, Vol. 30
- The Role of Technical Car Features in Managing and Promoting New Peer-to-Peer Car-Sharing Systems: Insights from Potential Users and Strategic Implications for Service Providers
  11 January 2025 | Applied Sciences, Vol. 15, No. 2
- Station-based, free-float, or hybrid: An operating mode analysis of a bike-sharing system
  Transportation Research Part B: Methodological, Vol. 191
- The concept of an adaptive vehicle fleet based on user preferences as an innovation in car-sharing services
  Journal of Open Innovation: Technology, Market, and Complexity, Vol. 10, No. 4
- A prospect theoretical choice model incorporating profitable and punctual uncertainties: an investigation in the participation of private car sharing
  23 October 2024 | Transportmetrica A: Transport Science, Vol. 13
- The effect of increasing vehicle utilization on the automotive industry
  European Journal of Operational Research, Vol. 317, No. 3
- Shared Autonomous Vehicle Modeling Considering System Optimization and Simulation
  Journal of Transportation Engineering, Part A: Systems, Vol. 150, No. 4
- Optimizing bike rebalancing strategies in free-floating bike-sharing systems: An enhanced distributionally robust approach
  Transportation Research Part E: Logistics and Transportation Review, Vol. 184
- A* Search Algorithm for an Optimal Investment Problem in Vehicle-Sharing Systems
  29 February 2024
- A data-driven discrete simulation-based optimization algorithm for car-sharing service design
  Transportation Research Part B: Methodological, Vol. 178
- A shared-mobility-based framework for evacuation planning and operations under forecast uncertainty
  5 December 2022 | IISE Transactions, Vol. 55, No. 10
- Relocation-related problems in vehicle sharing systems: A literature review
  Computers & Industrial Engineering, Vol. 183
- Joint optimisation of drone routing and battery wear for sustainable supply chain development: a mixed-integer programming model based on blockchain-enabled fleet sharing
  10 December 2021 | Annals of Operations Research, Vol. 327, No. 1
- Optimal order quantities, buyback prices, and government subsidies for cars in a sharing economy environment
  Computers & Industrial Engineering, Vol. 182
- Vehicle Rebalancing in a Shared Micromobility System with Rider Crowdsourcing
  Ziliang Jin,
  Yulan Wang,
  Yun Fong Lim,
  Kai Pan,
  Zuo-Jun Max Shen
  6 March 2023 | Manufacturing & Service Operations Management, Vol. 25, No. 4
- Innovations in Shared Mobility—Review of Scientific Works
  29 May 2023 | Smart Cities, Vol. 6, No. 3
- Tutorial on prescriptive analytics for logistics: What to predict and how to predict
  Electronic Research Archive, Vol. 31, No. 4
- An overnight relocation problem for one-way carsharing systems considering employment planning, return restrictions, and ride sharing of temporary workers
  Transportation Research Part E: Logistics and Transportation Review, Vol. 168
- Dynamic Discrimination Pricing and Freelance Drivers to Rebalance Mixed-Fleet Carsharing Systems
  IEEE Transactions on Intelligent Transportation Systems, Vol. 23, No. 12
- Multi-Criteria Analysis of the Selection of Vehicles with Electric, Hybrid, and Conventional Drive for Car-Sharing Services from the Perspective of Polish Occasional System Users
  29 November 2022 | Energies, Vol. 15, No. 23
- Integrated Backup Rolling Stock Allocation and Timetable Rescheduling with Uncertain Time-Variant Passenger Demand Under Disruptive Events
  Jiateng Yin,
  Lixing Yang,
  Andrea D’Ariano,
  Tao Tang,
  Ziyou Gao
  21 September 2022 | INFORMS Journal on Computing, Vol. 34, No. 6
- Dynamic Inventory Repositioning in On-Demand Rental Networks
  Saif Benjaafar,
  Daniel Jiang,
  Xiang Li,
  Xiaobo Li
  10 February 2022 | Management Science, Vol. 68, No. 11
- A rolling-horizon decision framework for integrating relocation and user flexibility in one-way electric carsharing systems
  Transportation Research Part C: Emerging Technologies, Vol. 144
- Stochastic one-way carsharing systems with dynamic relocation incentives through preference learning
  Transportation Research Part E: Logistics and Transportation Review, Vol. 166
- Smart urban transport and logistics: A business analytics perspective
  1 October 2022 | Production and Operations Management, Vol. 31, No. 10
- Development and Comparison of Ten Differential-Evolution and Particle Swarm-Optimization Based Algorithms for Discount-Guaranteed Ridesharing Systems
  23 September 2022 | Applied Sciences, Vol. 12, No. 19
- Selection of Car Models with a Classic and Alternative Drive to the Car-Sharing Services from the System’s Rare Users Perspective
  20 September 2022 | Energies, Vol. 15, No. 19
- Strategic responses to crisis: a review and synthesis of promising research directions
  9 December 2021 | Review of International Business and Strategy, Vol. 32, No. 4
- Slugging: Casual Carpooling for Urban Transit
  Shiliang Cui,
  Kaili Li,
  Luyi Yang,
  Jinting Wang
  4 August 2021 | Manufacturing & Service Operations Management, Vol. 24, No. 5
- When Shared Autonomous Electric Vehicles Meet Microgrids: Citywide Energy-Mobility Orchestration
  Wei Qi,
  Mengyi Sha,
  Shanling Li
  29 December 2021 | Manufacturing & Service Operations Management, Vol. 24, No. 5
- Dynamic Vehicle Allocation Policies for Shared Autonomous Electric Fleets
  Yuxuan Dong,
  René De Koster,
  Debjit Roy,
  Yugang Yu
  31 March 2022 | Transportation Science, Vol. 56, No. 5
- Modeling and optimization for carsharing services: A literature review
  Multimodal Transportation, Vol. 1, No. 3
- B2C car-sharing services: Sharing mode selection and value-added service investment
  Transportation Research Part E: Logistics and Transportation Review, Vol. 165
- Influences of car sharing and car license plate lottery policy on consumer preference and accessibility in urban mobility system: A stated choice experiment in Beijing
  Journal of Cleaner Production, Vol. 362
- A Modular and Transferable Reinforcement Learning Framework for the Fleet Rebalancing Problem
  IEEE Transactions on Intelligent Transportation Systems, Vol. 23, No. 8
- Combining analytics and simulation methods to assess the impact of shared, autonomous electric vehicles on sustainable urban mobility
  Information & Management, Vol. 59, No. 5
- One-way carsharing service design under demand uncertainty: A service reliability-based two-stage stochastic program approach
  Transportation Research Part E: Logistics and Transportation Review, Vol. 159
- A Bi-Level Optimization Model for Ride-Sourcing Platform’s Spatial Pricing Strategy
  Journal of Advanced Transportation, Vol. 2022
- Evaluating the Impacts of Optimization Horizon on the Shared Autonomous Vehicle Reservation Request System
  Journal of Advanced Transportation, Vol. 2022
- Integrated Multiresource Capacity Planning and Multitype Patient Scheduling
  Liping Zhou,
  Na Geng,
  Zhibin Jiang,
  Shan Jiang
  18 March 2021 | INFORMS Journal on Computing, Vol. 34, No. 1
- Fusion-Based Supply Chain Collaboration Using Machine Learning Techniques
  Intelligent Automation & Soft Computing, Vol. 31, No. 3
- The vehicle deployment and relocation problem for electric vehicle sharing systems considering demand and parking space stochasticity
  Transportation Research Part E: Logistics and Transportation Review, Vol. 156
- An innovative approach to solve the carsharing demand-supply imbalance problem under demand uncertainty
  Transportation Research Part C: Emerging Technologies, Vol. 132
- Sharing economy of electric vehicle private charge posts
  Transportation Research Part B: Methodological, Vol. 152
- Beyond Repositioning: Crowd‐Sourcing and Geo‐Fencing for Shared‐Mobility Systems
  1 October 2021 | Production and Operations Management, Vol. 30, No. 10
- Assessing dynamic capabilities of incumbents in the face of unprecedented industry transformation: the case of the automotive industry
  13 January 2021 | Journal of Strategy and Management, Vol. 14, No. 2
- Scenario Grouping and Decomposition Algorithms for Chance-Constrained Programs
  Yan Deng,
  Huiwen Jia,
  Shabbir Ahmed,
  Jon Lee,
  Siqian Shen
  13 October 2020 | INFORMS Journal on Computing, Vol. 33, No. 2
- Optimization of carsharing fleet size to maximize the number of clients served
  Computers, Environment and Urban Systems, Vol. 87
- Exploratory data science for discovery and ex‐ante assessment of operational policies: Insights from vehicle sharing
  12 October 2020 | Journal of Operations Management, Vol. 67, No. 3
- Charging an Electric Vehicle-Sharing Fleet
  Long He,
  Guangrui Ma,
  Wei Qi,
  Xin Wang
  3 April 2020 | Manufacturing & Service Operations Management, Vol. 23, No. 2
- On the Values of Vehicle-to-Grid Electricity Selling in Electric Vehicle Sharing
  Yiling Zhang,
  Mengshi Lu,
  Siqian Shen
  30 March 2020 | Manufacturing & Service Operations Management, Vol. 23, No. 2
- Optimizing the Strategic Decisions for One-Way Station-Based Carsharing Systems: A Mean-CVaR Approach
  IEEE Access, Vol. 9
- Fleet Repositioning for Vehicle Sharing Systems: the Optimality of Balanced Myopic Policy
  SSRN Electronic Journal, Vol. 18
- Offline-Online Approximate Dynamic Programming for Stochastic Carsharing Systems with Relocation Incentives
  SSRN Electronic Journal, Vol. 284
- Data-Driven Competitor-Aware Positioning in On-Demand Vehicle Rental Networks
  SSRN Electronic Journal, Vol. 31
- It's All in the Mix: Technology Choice between Driverless and Human-Driven Vehicles in Sharing Systems
  SSRN Electronic Journal, Vol. 284
- Probabilistic Envelope Constrained Multiperiod Stochastic Emergency Medical Services Location Model and Decomposition Scheme
  Chun Peng,
  Erick Delage,
  Jinlin Li
  1 October 2020 | Transportation Science, Vol. 54, No. 6
- Robust Vehicle Pre‐Allocation with Uncertain Covariates
  1 April 2020 | Production and Operations Management, Vol. 29, No. 4
- Robust Repositioning for Vehicle Sharing
  Long He,
  Zhenyu Hu,
  Meilin Zhang
  24 April 2019 | Manufacturing & Service Operations Management, Vol. 22, No. 2
- An integrated car-and-ride sharing system for mobilizing heterogeneous travelers with application in underserved communities
  22 July 2019 | IISE Transactions, Vol. 52, No. 2
- Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?
  Saif Benjaafar,
  Ming Hu
  1 August 2019 | Manufacturing & Service Operations Management, Vol. 22, No. 1
- Consumer Preferences for Car sharing: Evidence from a Mobility Mode Choice Experiment in Beijing
  SSRN Electronic Journal, Vol. 141
- Fleet sizing for one-way electric carsharing services considering dynamic vehicle relocation and nonlinear charging profile
  Transportation Research Part B: Methodological, Vol. 128
- Which battery-charging technology and insurance contract is preferred in the electric vehicle sharing business?
  Transportation Research Part A: Policy and Practice, Vol. 124
- Operations Management of Vehicle Sharing Systems
  12 January 2019
- Beyond Rebalancing: Crowd-Sourcing and Geo-Fencing for Shared-Mobility Systems
  SSRN Electronic Journal, Vol. 19
- Operations Management in the Age of the Sharing Economy: What Is Old and What Is New?
  SSRN Electronic Journal, Vol. 62
- When Shared Autonomous Electric Vehicles Meet Microgrids: Citywide Energy-Mobility Orchestration
  SSRN Electronic Journal, Vol. 30
- Robust Vehicle Pre-Allocation with Uncertain Covariates
  SSRN Electronic Journal, Vol. 36
- Robust Vehicle Allocation with Uncertain Covariates
  SSRN Electronic Journal, Vol. 54
- Location Design and Relocation of a Mixed Car-Sharing Fleet with a CO2 Emission Constraint
  Joy Chang,
  Miao Yu,
  Siqian Shen,
  Ming Xu
  10 August 2017 | Service Science, Vol. 9, No. 3
- Robust Repositioning for Vehicle Sharing
  SSRN Electronic Journal, Vol. 63

cover image Manufacturing & Service Operations Management

Volume 20, Issue 2

Spring 2018

Pages 161-388

Article Information

Supplemental Material

Metrics

Information

Received:April 12, 2016
Accepted:April 10, 2017
Published Online:October 16, 2017

Cite as

Mengshi Lu, Zhihao Chen, Siqian Shen (2017) Optimizing the Profitability and Quality of Service in Carshare Systems Under Demand Uncertainty. Manufacturing & Service Operations Management 20(2):162-180.

https://doi.org/10.1287/msom.2017.0644

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Optimizing the Profitability and Quality of Service in Carshare Systems Under Demand Uncertainty

Supplemental Material

Volume 20, Issue 2

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News