Title :
A robust optimization model for BTO manufacturing revenue management
Author :
Li, L. ; Chen, R.Q. ; Zhang, X. ; Bu, X.Z.
Author_Institution :
Huazhong Univ. of Sci. & Technol., Wuhan
Abstract :
Based on revenue management, the pricing and capacity allocation problem for build-to-order (BTO) manufacturing industry is studied quantitatively under the influence of the Internet and e-commerce. Firstly, a joint pricing and capacity allocation model is proposed based on the analysis of the characteristics for BTO manufacturing revenue management. Then, due to the demand uncertainty, a robust optimization model is proposed to solve the model. Finally, a case study is formulated via simulations. The results illustrate the effectiveness of the model and provide several managerial insights into the performance of revenue management in BTO manufacturing.
Keywords :
capacity planning (manufacturing); demand forecasting; electronic commerce; manufacturing industries; pricing; Internet; build-to-order manufacturing industry; capacity allocation model; capacity allocation problem; demand uncertainty; e-commerce; joint pricing; manufacturing revenue management; robust optimization model; Application software; Business; Computer aided manufacturing; Internet; Manufacturing industries; Pricing; Robustness; Stochastic processes; Technology management; Virtual manufacturing; BTO; Robust optimization; revenue management; stochastic demand;
Conference_Titel :
Industrial Engineering and Engineering Management, 2007 IEEE International Conference on
Conference_Location :
Singapore
Print_ISBN :
978-1-4244-1529-8
Electronic_ISBN :
978-1-4244-1529-8
DOI :
10.1109/IEEM.2007.4419297
