Dynamic pricing for project-oriented production: A comparison to current pricing techniques

Dynamic pricing for project-oriented production: A comparison to current pricing techniques

0.00 Avg rating0 Votes
Article ID: iaor200969125
Country: United Kingdom
Volume: 8
Issue: 4
Start Page Number: 373
End Page Number: 387
Publication Date: Aug 2009
Journal: Journal of Revenue and Pricing Management
Authors: ,
Keywords: yield management
Abstract:

Previous research on dynamic pricing has concentrated primarily on small projects using inflexible capacity. In this paper, we discuss the differences between this work and dynamic pricing for project-oriented production (POP). POP is formally defined and limitations of current dynamic pricing and revenue management techniques for this industry are demonstrated through empirical results. A new heuristic that exploits the flexible capacity of POP industries is developed for such industries and computational results are presented for its performance over a range of dynamic pricing environments. We test the heuristic on a variety of job sizes and rates, and our numerical results indicate that the heuristic significantly outperforms other heuristics in the literature for jobs that fall into the POP category.

Reviews

Required fields are marked *. Your email address will not be published.