Joint optimization of scheduling and pricing decisions with linear demand function and controllable processing time

This paper studies the problem of order acceptance, scheduling and pricing (OASP) with controllable processing time in a MTO system. The orders are specified by their controllable processing time, due date, deadline, release date, sequence dependent setup time and price in an unrelated parallel machine environment. The objective is to maximize the total net profit, i.e. revenue less scheduling cost, resulting from the pricing and scheduling decisions. The results indicate that considering high prices would be desirable for some cases where in different items the problem prefer to choose moderate prices with more orders. Thus the problem essentially should be considered with such a profit maximization objective besides the joint optimization of pricing and order acceptance.