Optimal Control of a Make-to-Stock System with Outsourced Production and Price-Sensitive Demand

Bid Price Control for Demand Fulfillment in a Make-to-Stock Production System

After three decades’ development, revenue management has become an active area of research. Its idea is not only applied in the traditional service industries such as airline, hotel and car rental, but also in manufacturing industry. In this paper, we consider the application of revenue management to a demand fulfillment problem of a make-to-stock (MTS) system, where the manufacturer is facing ...

Optimal Pricing and Production Policies of a Make-to-stock System with Fluctuating Demand

We study the effects of different pricing strategies available to a production–inventory system with capacitated supply, which operates in a fluctuating demand environment. The demand depends on the environment and on the offered price. For such systems, three plausible pricing strategies are investigated: static pricing, for which only one price is used at all times, environment-dependent pric...

Optimal Admission Control and Sequencing in a Make-to-Stock/Make-to-Order Production System

Optimal production and rationing policies of a make-to-stock production system with batch demand and backordering

In this paper, we consider stock rationing problem of a single-item make-to-stock production/inventory system with multiple demand classes. Demand arrives as a Poisson process with a randomly distributed batch size. It is assumed that the batch demand can be partially satisfied. The facility can produce a batch up to a certain capacity at the same time. Production time follows an exponential di...

An Epls Model for a Variable Production Rate with Stock-price Sensitive Demand and Deterioration

It is observed that large piles of consumer goods displayed in supermarkets lead consumers to buy more, which generates more profit to sellers. But a large number of on-hand display of stock leaves a negative impression on the buyer. Also, the amount of shelf or display space is limited. Due to this reason, we impose a restriction on the number of on-hand display of stock and also on initial an...