Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
4959973 | European Journal of Operational Research | 2017 | 9 Pages |
Abstract
We study the optimal dynamic quotation of leadtime and price for a Make-To-Order manufacturer to improve its expected profit. The manufacturer knows the probability distribution of customers' sensitivity on quoted leadtime and price according to history data. They can also obtain information on individual sensitivity of each customer through negotiations with customers. Our analysis shows that the information of individual sensitivity leads to additional expected profit. Moreover, our numerical experiments demonstrate that the additional expected profit can be significant.
Keywords
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Jiejian Feng, Michael Zhang,