Coordination of Order Acceptance, Scheduling and Pricing Decisions in Unrelated Parallel Machine Scheduling

We study the problem of order acceptance, scheduling and pricing (OASP) in parallel machine environment. Each order is characterized by due date, release date, deadline, controllable processing time, sequence dependent set up time and price in MTO system. We present a MILP formulation to maximize the net profit. Then under joint optimization approach, the pricing decisions set for unrelated parallel machine environment. The results show that the basic developed problem can solve the scheduling decisions based on different levels of products’ priced. Thus the problem solves these two categories of decisions simultaneously. Moreover, the changes of accepted orders in pricing levels can be analyzed regarding its dependency to price elasticity of items for future research.