6533b82cfe1ef96bd128ed0c

RESEARCH PRODUCT

Pricing Policies of Excess Capacity in Make to Order Production Systems

Giovanni PerronePaolo Renna

subject

Operations researchOrder (exchange)Build to orderFixed priceProduction (economics)Capacity utilizationBusinessDiscrete event simulationMarketingSettore ING-IND/35 - Ingegneria Economico-GestionaleFuzzy logicexcess of capacity make to order fuzzy logic discrete event simulationLimit price

description

The research concerns a make to order manufacturing environment and two classes of customers who submit orders. The core customers have a contract with the firm at fixed services level (price and due date). The short-term customers submit the orders based on the price set by the firm. In this paper, it is proposed a pricing policy based on fuzzy logic to set the price for the short-term customers. The fuzzy approach captures the state of the manufacturing systems in terms of congestion in order to set the price. The policy proposed is compared to a fixed price, and to a state-dependent policy based on three levels of price. A discrete event simulation environment is used to test the proposed approach in a static, dynamic environment and considering the reliability of the manufacturing system. The simulation results show how the proposed approach outperforms the other policies in all conditions tested.

yearjournalcountryeditionlanguage
2014-01-01
https://doi.org/10.1007/978-3-319-02054-9_68