Price and Due Date Setting under Service Level Constraints with Contingent Orders
This paper extends the model of Eur. J. Open Res. 116 (2) (1999) 305 that,optimizes pricing and lead time decisions for MTO firms with contingent orders under service level constraints. The respond function was modified to be of more practical by introducing the average service level to express the effect of delivery reliance on customers decision. We describe a simple enumerative procedure to determine optimal quotations,then compare the results between under service level constraints or not. Our simple numerical examples show that,on the consideration of service level,our proposed method can increase the total long-term expected marginal revenue. We derive a number of managerial insights based on the analysis of the influence of service level requirement on optimal bidding quotation.
contingent orders service level due date setting price setting
Hua Zhou Shuiyin Zhou
School of Management,Huazhong University of Science and Technology,Wuhan 430074,P.R.China
国际会议
北京
英文
2111-2115
2009-10-21（万方平台首次上网日期，不代表论文的发表时间）