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Dynamic Bid-Price Policies for Make-to-Order Revenue Management

  • Thomas SpenglerEmail author
  • Thomas Volling
  • Kai Wittek
  • Derya E. Akyol
Conference paper

Summary

A challenge of make-to-order (MTO) manufacturing lies in maximizing the total contribution margin by compiling the optimal order portfolio, given a fixed capacity. Particularly, bid-price based heuristics are successfully applied. The objective of this paper is to provide an extension to traditional bid-price based revenue management in MTO. Based on an analysis of the pros and cons of anticipative and reactive approaches, a hybrid approach combining both elements is proposed.

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References

  1. 1.
    Klein R (2007) Network capacity control using self-adjusting bid-prices. OR Spectrum 29:pp.39–60CrossRefGoogle Scholar
  2. 2.
    Spengler T, Rehkopf S (2005) Revenue Management Konzepte zur Entscheidungsunterstützung bei der Annahme von Kundenaufträgen. ZFP 16:pp.123–146CrossRefGoogle Scholar
  3. 3.
    Spengler T, Rehkopf S, Volling T (2007) Revenue management in make-to-order manufacturing: an application to the iron and steel industry. OR Spectrum 29:pp.157–171CrossRefGoogle Scholar
  4. 4.
    Spengler T, Volling T, Hintsches A (2008) Integration von Revenue Management Konzepten in die Auftragsannahme. ZFB Special Issue 4/2008: pp. 125–151Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  • Thomas Spengler
    • 1
    Email author
  • Thomas Volling
    • 1
  • Kai Wittek
    • 1
  • Derya E. Akyol
    • 2
  1. 1.Institute for Production and Logistics, TU Braunschweig
  2. 2.Department of Industrial EngineeringDokuz Eylul University

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