Pricing and scheduling decisions with leadtime flexibility

Pricing and scheduling decisions with leadtime flexibility

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Article ID: iaor2007651
Country: Netherlands
Volume: 171
Issue: 1
Start Page Number: 153
End Page Number: 169
Publication Date: May 2006
Journal: European Journal of Operational Research
Authors: , ,
Keywords: supply & supply chains
Abstract:

This paper studies a problem faced by a manufacturer who has the ability to set prices to influence demand, reject orders, and set leadtimes or due-dates for accepted orders. We present decision models that integrate pricing and production decisions for the cases where the manufacturer charges the same price or different prices to different customers. Through numerical analyses, we present insights regarding the benefits of price customization, leadtime, and inventory flexibilities, in various demand environments.

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