Title of article :
Learning and adaptation of a policy for dynamic order acceptance
in make-to-order manufacturing
Author/Authors :
Facundo Arredondo، نويسنده , , Ernesto Martinez *، نويسنده ,
Issue Information :
ماهنامه با شماره پیاپی سال 2010
Abstract :
Order acceptance under uncertainty is a critical decision-making problem at the interface between customer
relationship management and production planning of order-driven manufacturing systems. In this
work, a novel approach for simulation-based development and on-line adaptation of a policy for dynamic
order acceptance under uncertainty in make-to-order manufacturing using average-reward reinforcement
learning is proposed. Locally weighted regression is used to generalize the gain value of accepting
or rejecting similar orders regarding attributes such as product mix, price, size and due date. The order
acceptance policy is learned by classifying an arriving order as belonging either to the acceptance set
or to the rejection set. For exploitation, only orders in the acceptance set must be chosen for shop-floor
scheduling. For exploration some orders from the rejection set are also considered as candidates for
acceptance. Comparisons made with different order acceptance heuristics highlight the effectiveness of
the proposed ARLOA algorithm to maximize the average revenue obtained per unit cost of installed
capacity whilst quickly responding to unknown variations in order arrival rates and attributes.
Keywords :
Demand management , Order acceptance , Reinforcement learning , Revenue management , Make-to-order manufacturing , Order similarity
Journal title :
Computers & Industrial Engineering
Journal title :
Computers & Industrial Engineering