Hintsches, André Spengler, Thomas S. Volling, Thomas Wittek, Kai Priegnitz, Gerald
Year of Publication:
[Journal:] BuR - Business Research [ISSN:] 1866-8658 [Volume:] 3 [Year:] 2010 [Issue:] 2 [Pages:] 173-190
While revenue management (RM) is traditionally considered a tool of service operations, RM shows considerable potential for application in manufacturing operations. The typical challenges in make-to-order manufacturing are fixed manufacturing capacities and a great variety in offered products, going along with pronounced fluctuations in demand and profitability. Since Harris and Pinder in the mid-90s, numerous papers have furthered the understanding of RM theory in this environment. Nevertheless, results to be expected from applying the developed methods to a practical industry setting have yet to be reported. To this end, this paper investigates a possible application of RM at ThyssenKrupp VDM, leading to considerable improvements in several areas.
linear programming applications make-to-order manufacturing steel industry capacity control