A Joint Pricing and Capacity Allocation Model for BTO Manufacturing

Traditional revenue management is equated with capacity control and assumes demand and selling price are exogenous. A joint pricing and capacity allocation model is formulated based on the characteristics for BTO manufacturing. Then, due to the demand uncertainty, a chance constrained programming me...

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Bibliographic Details
Main Authors: Li, Li, Chen, Rongqiu, Bu, Xiangzhi
Format: Conference Proceeding
Language:English
Subjects:
Costs
Elasticity
Inventory control
Pricing
Printing
Pulp manufacturing
Stochastic processes
Technology management
Uncertainty
Virtual manufacturing
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Summary:Traditional revenue management is equated with capacity control and assumes demand and selling price are exogenous. A joint pricing and capacity allocation model is formulated based on the characteristics for BTO manufacturing. Then, due to the demand uncertainty, a chance constrained programming method is proposed to transform the model. Finally, the effectiveness of the proposed model and the application value of the revenue management model for BTO manufacturing are illustrated by numerical examples.
ISSN:2161-9646
DOI:10.1109/WICOM.2007.1065