A robust optimization model for BTO manufacturing revenue management

Author

Li, L. ; Chen, R.Q. ; Zhang, X. ; Bu, X.Z.

Author_Institution

Huazhong Univ. of Sci. & Technol., Wuhan

fYear

2007

fDate

2-4 Dec. 2007

Firstpage

783

Lastpage

786

Abstract

Based on revenue management, the pricing and capacity allocation problem for build-to-order (BTO) manufacturing industry is studied quantitatively under the influence of the Internet and e-commerce. Firstly, a joint pricing and capacity allocation model is proposed based on the analysis of the characteristics for BTO manufacturing revenue management. Then, due to the demand uncertainty, a robust optimization model is proposed to solve the model. Finally, a case study is formulated via simulations. The results illustrate the effectiveness of the model and provide several managerial insights into the performance of revenue management in BTO manufacturing.

Keywords

capacity planning (manufacturing); demand forecasting; electronic commerce; manufacturing industries; pricing; Internet; build-to-order manufacturing industry; capacity allocation model; capacity allocation problem; demand uncertainty; e-commerce; joint pricing; manufacturing revenue management; robust optimization model; Application software; Business; Computer aided manufacturing; Internet; Manufacturing industries; Pricing; Robustness; Stochastic processes; Technology management; Virtual manufacturing; BTO; Robust optimization; revenue management; stochastic demand;

fLanguage

English

Publisher

ieee

Conference_Titel

Industrial Engineering and Engineering Management, 2007 IEEE International Conference on

Conference_Location

Singapore

Print_ISBN

978-1-4244-1529-8

Electronic_ISBN

978-1-4244-1529-8

Type

conf

DOI

10.1109/IEEM.2007.4419297

Filename

4419297