Revenue management via multi-product available to promise

Previous Article
A solution framework for scheduling a BPM with non-identical job dimensions
JIMO Home
This Issue
Next Article
Finite algorithm for minimizing the product of two linear functions over a polyhedron

July 2007, 3(3): 457-479. doi: 10.3934/jimo.2007.3.457

Revenue management via multi-product available to promise

Sandeep Dulluri ^1, and N. R. Srinivasa Raghavan ^2,

1.	JDA Software Group Inc., (formerly Manugistics Inc.,), New Product Development - Demand Planning, Hyderabad, INDIA - 500 081, India
2.	Associate Professor, Decision Sciences Laboratory, Department of Management Studies, Bangalore, INDIA - 560 012, India

Received March 2006 Revised October 2006 Published July 2007

Abstract
Related Papers

Today's industries are highly complex in nature offering multiple customized quality products with shorter product life-cycles, volatile demand and tighter due-dates etc. to the customers. Manufacturers are focussing on Available-To-Promise (ATP) to their customers as a retention strategy. In other words manufacturers are forced to commit in advance to the customers the amount they can deliver by the specified due-date. In the current work we address a single manufacturer and multi-customer supply chain setting wherein there are multiple products, stochastic demands, varying profit rates, different learning rates etc. We restrict our focus to the multi-product ATP (MATP) strategies that maximize net profit of the manufacturer. We present optimization models in which there is a possibility of cancelling prior committed orders. We also model the dynamic pricing decision integrated with revenue management in MATP setting. We present the results of weak concavity of the MATP models and related structural insights. We support our thesis with rigorous numerical experimental results.

Keywords: Weak Concavity, Cancellation., Revenue Maximization, Available-to-Promise.

Mathematics Subject Classification: Primary: 90C90, 90C27, 90B30 ; Secondary: 90C3.

Citation: Sandeep Dulluri, N. R. Srinivasa Raghavan. Revenue management via multi-product available to promise. Journal of Industrial & Management Optimization, 2007, 3 (3) : 457-479. doi: 10.3934/jimo.2007.3.457

[1]	Abdelmalek Aboussoror, Samir Adly, Vincent Jalby. Weak nonlinear bilevel problems: Existence of solutions via reverse convex and convex maximization problems. Journal of Industrial & Management Optimization, 2011, 7 (3) : 559-571. doi: 10.3934/jimo.2011.7.559
[2]	Konstantinos Drakakis. A review of the available construction methods for Golomb rulers. Advances in Mathematics of Communications, 2009, 3 (3) : 235-250. doi: 10.3934/amc.2009.3.235
[3]	Habibe Zare Haghighi, Sajad Adeli, Farhad Hosseinzadeh Lotfi, Gholam Reza Jahanshahloo. Revenue congestion: An application of data envelopment analysis. Journal of Industrial & Management Optimization, 2016, 12 (4) : 1311-1322. doi: 10.3934/jimo.2016.12.1311
[4]	Alexander J. Zaslavski. Good programs in the RSS model without concavity of a utility function. Journal of Industrial & Management Optimization, 2006, 2 (4) : 399-423. doi: 10.3934/jimo.2006.2.399
[5]	Xuepeng Zhang, Zhibin Liang. Optimal layer reinsurance on the maximization of the adjustment coefficient. Numerical Algebra, Control & Optimization, 2016, 6 (1) : 21-34. doi: 10.3934/naco.2016.6.21
[6]	Nicholas Westray, Harry Zheng. Constrained nonsmooth utility maximization on the positive real line. Mathematical Control & Related Fields, 2015, 5 (3) : 679-695. doi: 10.3934/mcrf.2015.5.679
[7]	Ashkan Mohsenzadeh Ledari, Alireza Arshadi Khamseh, Mohammad Mohammadi. A three echelon revenue oriented green supply chain network design. Numerical Algebra, Control & Optimization, 2018, 8 (2) : 157-168. doi: 10.3934/naco.2018009
[8]	F. Zeyenp Sargut, H. Edwin Romeijn. Capacitated requirements planning with pricing flexibility and general cost and revenue functions. Journal of Industrial & Management Optimization, 2007, 3 (1) : 87-98. doi: 10.3934/jimo.2007.3.87
[9]	Cheng-Kang Chen, Yi-Xiang Liao. A deteriorating inventory model for an intermediary firm under return on inventory investment maximization. Journal of Industrial & Management Optimization, 2014, 10 (4) : 989-1000. doi: 10.3934/jimo.2014.10.989
[10]	Ming Yan, Alex A. T. Bui, Jason Cong, Luminita A. Vese. General convergent expectation maximization (EM)-type algorithms for image reconstruction. Inverse Problems & Imaging, 2013, 7 (3) : 1007-1029. doi: 10.3934/ipi.2013.7.1007
[11]	Michael Kühn. Power- and Log-concavity of viscosity solutions to some elliptic Dirichlet problems. Communications on Pure & Applied Analysis, 2018, 17 (6) : 2773-2788. doi: 10.3934/cpaa.2018131
[12]	Xiaojiao Tong, Felix F. Wu, Jifeng Su. Quadratic approximation and visualization of online contract-based available transfer capability region of power systems. Journal of Industrial & Management Optimization, 2008, 4 (3) : 553-563. doi: 10.3934/jimo.2008.4.553
[13]	Shiyong Li, Wei Sun, Quan-Lin Li. Utility maximization for bandwidth allocation in peer-to-peer file-sharing networks. Journal of Industrial & Management Optimization, 2017, 13 (5) : 1-19. doi: 10.3934/jimo.2018194
[14]	S. Yu. Pilyugin, A. A. Rodionova, Kazuhiro Sakai. Orbital and weak shadowing properties. Discrete & Continuous Dynamical Systems - A, 2003, 9 (2) : 287-308. doi: 10.3934/dcds.2003.9.287
[15]	Michael Cranston, Benjamin Gess, Michael Scheutzow. Weak synchronization for isotropic flows. Discrete & Continuous Dynamical Systems - B, 2016, 21 (9) : 3003-3014. doi: 10.3934/dcdsb.2016084
[16]	Yanfang Li, Zhuangyi Liu, Yang Wang. Weak stability of a laminated beam. Mathematical Control & Related Fields, 2018, 8 (3&4) : 789-808. doi: 10.3934/mcrf.2018035
[17]	Martin Brokate, Pavel Krejčí. Weak differentiability of scalar hysteresis operators. Discrete & Continuous Dynamical Systems - A, 2015, 35 (6) : 2405-2421. doi: 10.3934/dcds.2015.35.2405
[18]	Haiyang Wang, Jianfeng Zhang. Forward backward SDEs in weak formulation. Mathematical Control & Related Fields, 2018, 8 (3&4) : 1021-1049. doi: 10.3934/mcrf.2018044
[19]	Antonio Azzollini. On a functional satisfying a weak Palais-Smale condition. Discrete & Continuous Dynamical Systems - A, 2014, 34 (5) : 1829-1840. doi: 10.3934/dcds.2014.34.1829
[20]	Paul-Eric Chaudru De Raynal. Weak regularization by stochastic drift : Result and counter example. Discrete & Continuous Dynamical Systems - A, 2018, 38 (3) : 1269-1291. doi: 10.3934/dcds.2018052

2018 Impact Factor: 1.025

American Institute of Mathematical Sciences