Simultaneous and sequential price quotations for uncertain order inquiries with production scheduling cost.

Zhixin Liu, Liang Lu, Xiangtong Qi

    Research output: Contribution to journalArticle

    Abstract

    This article studies the coordination between pricing and production scheduling decisions of a manufacturer who quotes prices for a set of order inquiries. Each inquiry is either canceled or confirmed by its owner following a certain probability distribution that depends on the quoted price. The manufacturer then incurs a production scheduling cost for processing each firm order. Two types of price quotation schemes, simultaneous and sequential quotations, are investigated. A simultaneous quotation quotes all order inquiries simultaneously. The problem is formulated with a specific form of price function as a quadratic program that can be solved efficiently. Properties of optimal quotations are provided. A sequential quotation quotes order inquiries one at a time. For the problem, optimal algorithms are developed using implicit enumeration and design-efficient heuristics. Simultaneous and sequential quotations and several managerial insights are obtained in computational studies. The
    Original languageEnglish
    Pages (from-to)820 - 833
    JournalIIE Transactions
    Volume44
    Issue number10
    DOIs
    Publication statusPublished - 2012

    Fingerprint

    Production/scheduling
    Costs
    Owners
    Probability distribution
    Heuristics
    Pricing

    Keywords

    • PRICE quotations
    • PRODUCTION scheduling, INDUSTRIAL costs, DECISION making, DISTRIBUTION (Economic theory), ECONOMIC efficiency, BUSINESS development, coordination, production scheduling

    Cite this

    Liu, Zhixin ; Lu, Liang ; Qi, Xiangtong. / Simultaneous and sequential price quotations for uncertain order inquiries with production scheduling cost. In: IIE Transactions. 2012 ; Vol. 44, No. 10. pp. 820 - 833.
    @article{88597ddc8bcd4befa82e7b62d1a2e25f,
    title = "Simultaneous and sequential price quotations for uncertain order inquiries with production scheduling cost.",
    abstract = "This article studies the coordination between pricing and production scheduling decisions of a manufacturer who quotes prices for a set of order inquiries. Each inquiry is either canceled or confirmed by its owner following a certain probability distribution that depends on the quoted price. The manufacturer then incurs a production scheduling cost for processing each firm order. Two types of price quotation schemes, simultaneous and sequential quotations, are investigated. A simultaneous quotation quotes all order inquiries simultaneously. The problem is formulated with a specific form of price function as a quadratic program that can be solved efficiently. Properties of optimal quotations are provided. A sequential quotation quotes order inquiries one at a time. For the problem, optimal algorithms are developed using implicit enumeration and design-efficient heuristics. Simultaneous and sequential quotations and several managerial insights are obtained in computational studies. The",
    keywords = "PRICE quotations, PRODUCTION scheduling, INDUSTRIAL costs, DECISION making, DISTRIBUTION (Economic theory), ECONOMIC efficiency, BUSINESS development, coordination, production scheduling",
    author = "Zhixin Liu and Liang Lu and Xiangtong Qi",
    year = "2012",
    doi = "10.1080/0740817X.2011.649389",
    language = "English",
    volume = "44",
    pages = "820 -- 833",
    journal = "IIE Transactions",
    issn = "0740-817X",
    publisher = "Taylor & Francis",
    number = "10",

    }

    Simultaneous and sequential price quotations for uncertain order inquiries with production scheduling cost. / Liu, Zhixin; Lu, Liang; Qi, Xiangtong.

    In: IIE Transactions, Vol. 44, No. 10, 2012, p. 820 - 833.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Simultaneous and sequential price quotations for uncertain order inquiries with production scheduling cost.

    AU - Liu, Zhixin

    AU - Lu, Liang

    AU - Qi, Xiangtong

    PY - 2012

    Y1 - 2012

    N2 - This article studies the coordination between pricing and production scheduling decisions of a manufacturer who quotes prices for a set of order inquiries. Each inquiry is either canceled or confirmed by its owner following a certain probability distribution that depends on the quoted price. The manufacturer then incurs a production scheduling cost for processing each firm order. Two types of price quotation schemes, simultaneous and sequential quotations, are investigated. A simultaneous quotation quotes all order inquiries simultaneously. The problem is formulated with a specific form of price function as a quadratic program that can be solved efficiently. Properties of optimal quotations are provided. A sequential quotation quotes order inquiries one at a time. For the problem, optimal algorithms are developed using implicit enumeration and design-efficient heuristics. Simultaneous and sequential quotations and several managerial insights are obtained in computational studies. The

    AB - This article studies the coordination between pricing and production scheduling decisions of a manufacturer who quotes prices for a set of order inquiries. Each inquiry is either canceled or confirmed by its owner following a certain probability distribution that depends on the quoted price. The manufacturer then incurs a production scheduling cost for processing each firm order. Two types of price quotation schemes, simultaneous and sequential quotations, are investigated. A simultaneous quotation quotes all order inquiries simultaneously. The problem is formulated with a specific form of price function as a quadratic program that can be solved efficiently. Properties of optimal quotations are provided. A sequential quotation quotes order inquiries one at a time. For the problem, optimal algorithms are developed using implicit enumeration and design-efficient heuristics. Simultaneous and sequential quotations and several managerial insights are obtained in computational studies. The

    KW - PRICE quotations

    KW - PRODUCTION scheduling, INDUSTRIAL costs, DECISION making, DISTRIBUTION (Economic theory), ECONOMIC efficiency, BUSINESS development, coordination, production scheduling

    U2 - 10.1080/0740817X.2011.649389

    DO - 10.1080/0740817X.2011.649389

    M3 - Article

    VL - 44

    SP - 820

    EP - 833

    JO - IIE Transactions

    JF - IIE Transactions

    SN - 0740-817X

    IS - 10

    ER -