The Research On Coordinated Decision-Making Of Revenue Management And Production Scheduling Under Make-to-Order Environment

The paper studies the order selection and negotiation problem in make-to-orderproduction environment, which is a compound problem of revenue management andproduction scheduling with multiple research dimensions and ananlyis scopes. Thispaper underlines the selection, pricing and lead time determination with dynamicorder arrival and sequence-dependent non-group setup time in a finite planninghorizon of multiple production periods. Firstly the selection problem with fixed priceand lead time is studied, which is shown strongly NP-hard. An mathematical programmodel is proposed to approximate value function of a system state, and thereby theopportunity cost can be computed as a the criteria of selection. A heuristic method isused for production scheduling. The selection model shows superority over simpleFCFS acceptance rule, and the optimality gap of our algorithm is also satisfying.Secondly we study the model of price and lead time negotiation, in which there arethree options of price and lead time combination. The assumptions of both single andmultiple price discounts are respectively discussed, yielding also more revenue thanfixed price model. The final part deals with the pricing problem, in which theacceptable price of a customer conforms with certain stochastic distribution. Based onthe assmption of uniform distriution with known expectance, the optimal pricing ruleis suggested, which generates much more revenue than simply pricing at theexpectance level.