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We consider an assemble-to-order system with a high volume of prospective customers arriving per unit time. Our objective is to maximize expected infinite horizon discounted profit by choosing product prices, component production capacities, and a dynamic policy for sequencing customer orders...
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We consider an assemble-to-order system with a high volume of prospective customers arriving per unit time. A companion paper established that with optimal product prices, component production capacity, and sequencing of orders for assembly, the system can be approximated by a diffusion process...
Persistent link: https://www.econbiz.de/10005818995
Many service providers offer customers the choice of either waiting in a line or going offline and returning at a dynamically determined future time. The best-known example is the FASTPASS<sup>®</sup> system at Disneyland. To operate such a system, the service provider must make an upfront decision on how...
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