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A multiobjective differentiated service model for pricing and due date setting in the handmade wood product industry

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Abstract

Since various service needs for pricing and setting due dates in the handmade wood product industry are increasing dramatically, a differentiated service based on the maximal profit criterion becomes an important marketing strategy for customer relationship management (CRM). However, other important objectives of customer satisfaction maximization are often ignored. In this paper, a multiobjective differentiated service model based on customer preference information on pricing and due date setting into consideration in the handmade wood product industry is proposed. Since resolving the differentiated service model is an NP problem, a multiobjective hybrid heuristic method is proposed. The hybrid heuristic method integrates large neighborhood search (LNS) into particle swarm optimization (PSO). The results revealed that the proposed method is better than existing methods and other heuristic methods for the single or differentiated service model in terms of both profit and customer satisfaction criterion. Some sensitivity analysis for different customer segments and different arrival rates is also considered.

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Authors and Affiliations

  1. National Pingtung University of Science and Technology, Neipu, Pingtung County, Taiwan

    Shu-Chu Liu, Chih-Hung Chung & Yi-Chen Lai

  2. University of North Texas, Denton, TX, USA

    Chih-Hung Chung

Authors
  1. Shu-Chu Liu
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  2. Chih-Hung Chung
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  3. Yi-Chen Lai
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Correspondence to Chih-Hung Chung.

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Appendix A (Questionnaire for product: cookie box)

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Liu, SC., Chung, CH. & Lai, YC. A multiobjective differentiated service model for pricing and due date setting in the handmade wood product industry. Int J Adv Manuf Technol 77, 131–144 (2015). https://doi.org/10.1007/s00170-014-6440-0

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  • DOI: https://doi.org/10.1007/s00170-014-6440-0

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