Pricing and scheduling decisions with leadtime flexibility
This paper studies a problem faced by a manufacturer who has the ability to set prices to influence demand, reject orders, and set leadtimes or due-dates for accepted orders. We present decision models that integrate pricing and production decisions for the cases where the manufacturer charges the same price or different prices to different customers. Through numerical analyses, we present insights regarding the benefits of price customization, leadtime, and inventory flexibilities, in various demand environments.
pricing scheduling leadtime flexibility demand management capacity management order selection