Capacity rationing decision procedures with order profit as a continuous random variable

International Journal of Production Economics

Volumn 125, Issue 1, 2010, Pages 125-136

  Hung, Yi Feng ^a   Lee, Tzu Yuan ^a  

^a NATIONAL TSING HUA UNIVERSITY   (Taiwan)

Author keywords

Capacity rationing; Decision analysis; Demand management; Dynamic knapsack problem

Indexed keywords

0-1 KNAPSACK PROBLEM; AVAILABLE CAPACITY; CAPACITY REQUIREMENT; CUSTOMER ORDERS; DECISION ANALYSIS; DECISION PROCEDURE; DEMAND MANAGEMENT; KNAPSACK PROBLEMS; LIMITED CAPACITY; MAKE TO ORDER; MANUFACTURING CAPACITY; OPTIMAL SOLUTIONS; ORDER SELECTION; PER UNIT; POISSON PROCESS; SIMULATION EXPERIMENTS; STOCHASTIC CAPACITY; STOCHASTIC PROBLEMS;

DECISION THEORY; EARNINGS; INTEGER PROGRAMMING; MANUFACTURE; POISSON DISTRIBUTION; PROFITABILITY; RANDOM PROCESSES; RANDOM VARIABLES; STOCHASTIC SYSTEMS;

DECISION MAKING;

EID: 77949570120     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2010.01.012     Document Type: Article

References (34)

1. Badinelli R.D. An optimal, dynamic policy for hotel yield management. European Journal of Operational Research 121 3 (2000) 476-503
2. Balakrishnan N., Patterson J.W., and Sridharan V. Robustness of capacity rationing policies. European Journal of Operational Research 115 2 (1999) 328-338
3. Balakrishnan N., Sridharan V., and Patterson J.W. Rationing capacity between two product classes. Decision Sciences 27 2 (1996) 185-214
4. Barut M., and Sridharan V. Design and evaluation of a dynamic capacity apportionment procedure. European Journal of Operational Research 155 1 (2004) 112-133
5. Barut M., and Sridharan V. Revenue management in order-driven production systems. Decision Sciences 36 2 (2005) 287-316
6. Bitran G., and Caldentey R. An overview of pricing models for revenue management. Manufacturing and Service Operations Management 5 3 (2003) 203-229
7. Brumelle S.L., and Mcgill J.I. Airline seat allocation with multiple nested fare classes. Operations Research 41 1 (1993) 127-137
8. Brun A., Caniato F., Caridi M., Castelli C., Miragliotta G., Ronchi S., Sianesi A., and Spina G. Logistics and supply chain management in luxury fashion retail: empirical investigation of Italian firms. International Journal of Production Economics 114 2 (2008) 554-570
9. Carroll W.J., and Grimes R.C. Evolutionary change in product management: experiences in the car rental industry. Interfaces 25 5 (1995) 84-104
10. Elmaghraby W., and Keskinocak P. Dynamic pricing in the presence of inventory considerations: research overview, current practices, and future directions. Management Science 49 10 (2003) 1287-1309
11. Emeksiz M., Gursoy D., and Icoz O. A yield management model for five-star hotels: computerized and non-computerized implementation. International Journal of Hospitality Management 25 (2006) 536-551
12. Guerrero H.H., and Kern G.M. How to more effectively accept and refuse orders. Production and Inventory Management Journal 29 4 (1988) 59-63
13. Ha A.Y. Inventory rationing in a make-to-stock production system with several demand classes and lost sales. Management Science 43 8 (1997) 1093-1103
14. Haynsworth H.C., and Price B.A. A model for use in the rationing of inventory during lead time. Naval Research Logistics 36 4 (1989) 491-506
15. Harris F.H., and Pinder J.P. A revenue management approach to demand management and order booking in assemble-to-order manufacturing. Journal of Operations Management 13 4 (1995) 299-309
16. ILOG, 2001. ILOG CPLEX 7.5 Reference Manual, ILOG, France.
17. Kaplan S. Stock rationing. Management Science 15 5 (1969) 260-267
18. Kellerer H., Pferschy U., and Pisinger D. Knapsack Problems (2004), Springer Verlag, New York
19. Kimes S.E. Yield management: a tool for capacity-constrained service firms. Journal of Operations Management 8 4 (1989) 348-363
20. Kimes S.E. Revenue management on the links: applying yield management to the golf-course industry. Cornell Hotel and Restaurant Administration Quarterly 41 1 (2000) 120-127
21. Martello S., and Toth P. Knapsack Problem: Algorithms and Computer Implementations (1990), John Wiley & Sons, Chichester
22. Nahmias S., and Demmy W.S. Operating characteristics of an inventory system with rationing. Management Science 27 11 (1981) 1236-1245
23. Norman E.D., and Mayer K.J. Yield management in Las Vegas casino hotels. Cornell Hotel and Restaurant Administration Quarterly 38 5 (1997) 28-33
24. Panjer H.H. Recursive evaluation of a family of compound distributions. Astin Bulletion 12 1 (1981) 22-26
25. Patterson J.W., Balakrishnan N., and Sridharan V. An experimental comparison of capacity rationing models. International Journal of Production Research 35 6 (1997) 1639-1649
26. Pfeifer P.E. The airline discount fare allocation problem. Decision Sciences 20 1 (1989) 149-157
27. Relihan W.J. The yield-management approach to hotel-room pricing. Cornell Hotel and Restaurant Administration Quarterly 30 3 (1989) 40-45
28. Rinks D.B. Rationing safety stock in the USAF's multi-echelon inventory system. Engineering Costs and Production Economics 17 1-4 (1989) 99-109
29. Şen A. The US fashion industry: a supply chain review. International Journal of Production Economics 114 2 (2008) 571-593
30. Simchi-Levi D., Kaminsky P., and Simchi-Levi E. Designing and Managing the Supply Chain, Concepts, Strategies, and Case Studies (2008), McGraw-Hill, New York
31. Smith B.C., Leimkuhler J.F., and Darrow R.M. Yield management at American airlines. Interfaces 22 1 (1992) 8-31
32. Sridharan V. Managing capacity in tightly constrained systems. International Journal of Production Economics 56-57 1 (1998) 601-610
33. Tan T., Güllü R., and Nesim Erkip N. Using imperfect advance demand information in ordering and rationing decisions. International Journal of Production Economics 121 2 (2009) 571-593
34. Whybark D.C., and Wijngaard J. Editorial: manufacturing-sales coordination. International Journal of Production Economics 37 1 (1994) 1-4