Revenue Management in Make-To-Order Manufacturing: Case Study of Capacity Control at ThyssenKrupp VDM
While revenue management (RM) is traditionally considered a tool of service operations, RM shows considerable potential for application in manufacturing operations. The typical challenges in make-to-order manufacturing are fixed manufacturing capacities and a great variety in offered products, going along with pronounced fluctuations in demand and profitability. Since Harris and Pinder in the mid-90s, numerous papers have furthered the understanding of RM theory in this environment. Nevertheless, results to be expected from applying the developed methods to a practical industry setting have yet to be reported. To this end, this paper investigates a possible application of RM at ThyssenKrupp VDM, leading to considerable improvements in several areas.
Year of publication: |
2010-10-29
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Authors: | Hintsches, André ; Spengler, Thomas S. ; Volling, Thomas ; Wittek, Kai ; Priegnitz, Gerald |
Subject: | linear programming applications | make-to-order | manufacturing | steel industry | capacity control |
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freely available