Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments

Abstract Usually, in make-to-order environments which work only in response to the customer’s orders, manufacturers for maximizing the profits should offer the best price and delivery time for an order considering the existing capacity and the customer’s sensitivity to both the factors. In this pape...

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Main Authors: Hamid Sattari Garmdare, M. M. Lotfi, Mahboobeh Honarvar
Format: Article
Language:English
Published: Islamic Azad University 2017-05-01
Series:Journal of Industrial Engineering International
Subjects:
Online Access:http://link.springer.com/article/10.1007/s40092-017-0205-y
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author Hamid Sattari Garmdare
M. M. Lotfi
Mahboobeh Honarvar
author_facet Hamid Sattari Garmdare
M. M. Lotfi
Mahboobeh Honarvar
author_sort Hamid Sattari Garmdare
collection DOAJ
description Abstract Usually, in make-to-order environments which work only in response to the customer’s orders, manufacturers for maximizing the profits should offer the best price and delivery time for an order considering the existing capacity and the customer’s sensitivity to both the factors. In this paper, an integrated approach for pricing, delivery time setting and scheduling of new arrival orders are proposed based on the existing capacity and accepted orders in system. In the problem, the acquired market demands dependent on the price and delivery time of both the manufacturer and its competitors. A mixed-integer non-linear programming model is presented for the problem. After converting to a pure non-linear model, it is validated through a case study. The efficiency of proposed model is confirmed by comparing it to both the literature and the current practice. Finally, sensitivity analysis for the key parameters is carried out.
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spelling doaj.art-50dbce87e9a049bfaaf1297fa0f4206e2022-12-21T18:30:34ZengIslamic Azad UniversityJournal of Industrial Engineering International1735-57022251-712X2017-05-01141556410.1007/s40092-017-0205-yIntegrated model for pricing, delivery time setting, and scheduling in make-to-order environmentsHamid Sattari Garmdare0M. M. Lotfi1Mahboobeh Honarvar2Department of Industrial Engineering, Yazd UniversityDepartment of Industrial Engineering, Yazd UniversityDepartment of Industrial Engineering, Yazd UniversityAbstract Usually, in make-to-order environments which work only in response to the customer’s orders, manufacturers for maximizing the profits should offer the best price and delivery time for an order considering the existing capacity and the customer’s sensitivity to both the factors. In this paper, an integrated approach for pricing, delivery time setting and scheduling of new arrival orders are proposed based on the existing capacity and accepted orders in system. In the problem, the acquired market demands dependent on the price and delivery time of both the manufacturer and its competitors. A mixed-integer non-linear programming model is presented for the problem. After converting to a pure non-linear model, it is validated through a case study. The efficiency of proposed model is confirmed by comparing it to both the literature and the current practice. Finally, sensitivity analysis for the key parameters is carried out.http://link.springer.com/article/10.1007/s40092-017-0205-yMake-to-orderPricingDelivery timeOrder schedulingMixed-integer non-linear program
spellingShingle Hamid Sattari Garmdare
M. M. Lotfi
Mahboobeh Honarvar
Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments
Journal of Industrial Engineering International
Make-to-order
Pricing
Delivery time
Order scheduling
Mixed-integer non-linear program
title Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments
title_full Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments
title_fullStr Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments
title_full_unstemmed Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments
title_short Integrated model for pricing, delivery time setting, and scheduling in make-to-order environments
title_sort integrated model for pricing delivery time setting and scheduling in make to order environments
topic Make-to-order
Pricing
Delivery time
Order scheduling
Mixed-integer non-linear program
url http://link.springer.com/article/10.1007/s40092-017-0205-y
work_keys_str_mv AT hamidsattarigarmdare integratedmodelforpricingdeliverytimesettingandschedulinginmaketoorderenvironments
AT mmlotfi integratedmodelforpricingdeliverytimesettingandschedulinginmaketoorderenvironments
AT mahboobehhonarvar integratedmodelforpricingdeliverytimesettingandschedulinginmaketoorderenvironments