Dynamic price and lead time quotation in a make-to-order system: Approximate solutions

Özgün B. Bekki, Esma Gel

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In this paper, we investigate the price and lead time decisions of a profit-maximizing firm providing a product or a service in a make-to-order manner. We assume that upon the arrival of a customer request, the firm quotes the price and the lead time and then the customer either accepts the quotation and places an order or rejects it and cancels the request. Furthermore, we assume that the number of unfulfilled orders at any time is limited due to resource constraints. We propose methodologies to find optimal and near optimal solutions for the dynamic quotation problem and test the performance of these methodologies through a numerical study.

Original languageEnglish (US)
Title of host publicationIIE Annual Conference and Expo 2008
Pages1825-1830
Number of pages6
Publication statusPublished - 2008
EventIIE Annual Conference and Expo 2008 - Vancouver, BC, Canada
Duration: May 17 2008May 21 2008

Other

OtherIIE Annual Conference and Expo 2008
CountryCanada
CityVancouver, BC
Period5/17/085/21/08

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Keywords

  • Congestion control
  • Control of queues
  • Dynamic price and lead time quotation
  • Heuristics

ASJC Scopus subject areas

  • Computer Science Applications
  • Software
  • Industrial and Manufacturing Engineering

Cite this

Bekki, Ö. B., & Gel, E. (2008). Dynamic price and lead time quotation in a make-to-order system: Approximate solutions. In IIE Annual Conference and Expo 2008 (pp. 1825-1830)