Integration of Pricing and Production Scheduling Decisions: A Mathematical Model

J. Mhanna; H. Nouinou

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Paper

Integration of Pricing and Production Scheduling Decisions: A Mathematical Model

Topics: Linear Programming; Optimization; Scheduling; Supply Chain Management

In Proceedings of the 13th International Conference on Operations Research and Enterprise Systems ICORES - Volume 1, 221-228, 2024 , Rome, Italy

Authors: J. Mhanna and H. Nouinou

Affiliation: CESI LINEACT, 54000 Nancy, France

Keyword(s): Pricing, Production Scheduling, Parallel Machines, Mixed Integer Linear Programming, Periodic Ordering.

Abstract: In today’s competitive manufacturing landscape, achieving operational efficiency and optimizing revenue generation are key objectives for make-to-order manufacturers. This paper presents a novel approach for integrating production scheduling and pricing decisions in a make-to-order manufacturing environment. We propose a comprehensive mathematical model that addresses the complex interplay between production scheduling and pricing strategies. By jointly optimizing these two critical aspects, manufacturers can enhance their competitiveness and profitability. The objective of the scheduling decisions is to minimize the total tardiness penalties of jobs on a non-preemptive parallel machine environment, a widely used measure of customer service. Pricing decisions on the other hand aim at maximizing the total revenue. A mixed integer linear programming model is formulated and an algorithm is developed based on the e-constraint approach to conduct the experimental analysis. The algorithm a ims to find the best solutions, from the decision-maker’s perspective, by iteratively adjusting production schedules and pricing decisions. (More)

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Paper citation in several formats:

Mhanna, J. and Nouinou, H. (2024). Integration of Pricing and Production Scheduling Decisions: A Mathematical Model. In Proceedings of the 13th International Conference on Operations Research and Enterprise Systems - ICORES; ISBN 978-989-758-681-1; ISSN 2184-4372, SciTePress, pages 221-228. DOI: 10.5220/0012307700003639

@conference{icores24,
author={J. Mhanna. and H. Nouinou.},
title={Integration of Pricing and Production Scheduling Decisions: A Mathematical Model},
booktitle={Proceedings of the 13th International Conference on Operations Research and Enterprise Systems - ICORES},
year={2024},
pages={221-228},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012307700003639},
isbn={978-989-758-681-1},
issn={2184-4372},
}

TY - CONF

JO - Proceedings of the 13th International Conference on Operations Research and Enterprise Systems - ICORES
TI - Integration of Pricing and Production Scheduling Decisions: A Mathematical Model
SN - 978-989-758-681-1
IS - 2184-4372
AU - Mhanna, J.
AU - Nouinou, H.
PY - 2024
SP - 221
EP - 228
DO - 10.5220/0012307700003639
PB - SciTePress