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This study illustrates how a manufacturer can use leadtime differentiation- selling the same product to different customers at different prices based on delivery leadtime- to simultaneously increase revenue and reduce capacity requirements. The manufacturer's production facility is modeled by...
Persistent link: https://www.econbiz.de/10014111912
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/10014027958
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...
Persistent link: https://www.econbiz.de/10014027959