A robust optimization model for BTO manufacturing revenue management

L. Li*, R. Q. Chen, X. Zhang, X. Z. Bu

*Corresponding author for this work

    Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

    1 Citation (Scopus)

    Abstract

    Based on revenue management, the pricing and capacity allocation problem for Build-to-order (BTO) manufacturing industry is studied quantitatively under the influence of the Internet and e-commerce. Firstly, a joint pricing and capacity allocation model is proposed based on the analysis of the characteristics for BTO manufacturing revenue management. Then, due to the demand uncertainty, a robust optimization model is proposed to solve the model. Finally, a case study is formulated via simulations. The results illustrate the effectiveness of the model and provide several managerial insights into the performance of revenue management in BTO manufacturing.

    Original languageEnglish
    Title of host publicationIEEM 2007
    Subtitle of host publication2007 IEEE International Conference on Industrial Engineering and Engineering Management
    Pages783-786
    Number of pages4
    DOIs
    Publication statusPublished - 2007
    Event2007 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2007 - , Singapore
    Duration: 2 Dec 20074 Dec 2007

    Publication series

    NameIEEM 2007: 2007 IEEE International Conference on Industrial Engineering and Engineering Management

    Conference

    Conference2007 IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2007
    Country/TerritorySingapore
    Period2/12/074/12/07

    Keywords

    • BTO
    • Revenue management
    • Robust optimization
    • Stochastic demand

    Fingerprint

    Dive into the research topics of 'A robust optimization model for BTO manufacturing revenue management'. Together they form a unique fingerprint.

    Cite this