Two-stage stochastic program for inventory rebalancing of bike-sharing systems

Awnalisa Walker, Soongeol Kwon

Research output: Chapter in Book/Report/Conference proceedingConference contribution


In recent years, bike sharing has become more prevalent in many major cities because of their convenience, environmental impact, and health benefits. As popularity and usage increase, there exists an urgent need for a decision-making model for the efficient operations of bike-sharing systems. This study addresses inventory rebalancing, which is one of the critical operational decisions of bike-sharing systems. Due to demand uncertainty and fluctuation, the usability of bike-sharing systems can be limited, e.g., stations become full or empty and users cannot check-in/out bikes. Hence, inventory rebalancing should be done properly to maximize the availability of service. Given this, this study intends to develop a decision-making model designed to determine an optimal daily inventory rebalancing plan based on real-world practice. In particular, this study proposes a two-stage stochastic program that can be formulated to determine initial inventory levels for each one-day operations while minimizing operational cost for bike relocation and expected penalty cost for unmet demand caused by uncertainty. The sampling-based approach is used to solve the proposed two-stage stochastic program based on scenario data composed from the historical data obtained from the Houston BCycle. To evaluate the proposed model, numerical experiments are conducted under various settings, and the results show that the proposed inventory rebalancing model can be successfully applied to improve usability of bike-sharing systems.

Original languageEnglish
Title of host publicationProceedings of the 2020 IISE Annual Conference
EditorsL. Cromarty, R. Shirwaiker, P. Wang
PublisherInstitute of Industrial and Systems Engineers, IISE
Number of pages6
ISBN (Electronic)9781713827818
Publication statusPublished - 2020
Event2020 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2020 - Virtual, Online, United States
Duration: 2020 Nov 12020 Nov 3

Publication series

NameProceedings of the 2020 IISE Annual Conference


Conference2020 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2020
Country/TerritoryUnited States
CityVirtual, Online

Bibliographical note

Publisher Copyright:
© Proceedings of the 2020 IISE Annual. All Rights Reserved.

All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering


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