Using Order Admission Control to Maximize Revenue under Capacity Utilization Requirements in Mto B2b Industries
نویسندگان
چکیده
An order admission model is developed to introduce revenue management into MTO B2B industries. This solution is designed to resolve a common order management dilemma faced by manufacturers with severe seasonal demands. Considering the requirement that manufacturing industries be risk averse, the objective is to maximize the expected total revenue under a targeted capacity utilization constraint. The deterministic admission problem and its auxiliary model are presented and solved through an iterative dynamic programming algorithm. Through this algorithm, a reward-threshold order admission policy can be established at the beginning of the planning horizon, helping companies to achieve a balance between profitability and stability.
منابع مشابه
Order acceptance and scheduling at a make-to-order system using revenue management
Order Acceptance and Scheduling at a Make-to-Order System Using Revenue Management. (August 2006) Anshu Jalora, B.Tech., Indian Institute of Technology, New Delhi, India; M.E., Texas A&M University Chair of Advisory Committee: Brett A. Peters Make-to-order (MTO) systems have been traditionally popular in manufacturing industries that either seek to provide greater variety to their customers or ...
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