Title :
A revenue management model in BTO manufacturing over an infinite horizon
Author :
Li, Li ; Chen, Zhi-xiang
Author_Institution :
Int. Bus. Sch., Sun Yat-Sen Univ., Guangzhou, China
Abstract :
This research examines the pricing and capacity utilization decisions facing a BTO manufacturing firm serving customers that are segmented by different lead-times. We model the firm´s operation as an M/M/1 queue and treat the demand of each segment as being linear in price. We characterize the optimal decisions and present numerical examples to validate the benefits of applying RM in BTO manufacturing and the impacts of lead-times on optimality.
Keywords :
customer services; decision theory; financial management; infinite horizon; manufacturing industries; pricing; queueing theory; M/M/1 queue; build-to-order manufacturing firm; capacity utilization decision; customer service; infinite horizon; pricing; revenue management model; Industries; Lead; Manufacturing; Mathematical model; Numerical models; Pricing; Capacity planning; Delivery time; Pricing; Revenue management; queuing theory;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on
Conference_Location :
Macao
Print_ISBN :
978-1-4244-8501-7
Electronic_ISBN :
2157-3611
DOI :
10.1109/IEEM.2010.5674411
