Revenue management with flexible products: The value of flexibility and its incorporation into DLP-based approaches

Gönsch, Jochen; Koch, Sebastian; Steinhardt, Claudius

doi:10.1016/j.ijpe.2014.03.010

Cited by 21 publications

(10 citation statements)

References 41 publications

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“…Gönsch and Steinhardt (2013) provide a more general view on flexible products by extending the classical dynamic program decomposition. Gönsch et al (2014) present similar results by adjusting product valuation in the deterministic linear optimisation model to capture the monetary benefits.…”

Section: Offering Flexible Productssupporting

confidence: 57%

Resilient revenue management: a literature survey of recent theoretical advances

Cleophas

Kadatz

Vock³

2017

J Revenue Pricing Manag

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She has pursued research revenue management since receiving her PhD from the International Graduate School of Dynamic Intelligent Systems in Paderborn. During a stint in the industry, she worked as a revenue management consultant for Deutsche Lufthansa. She is particularly interested in applying simulation and data analytics to examine customer and analyst behaviour. Daniel Kadatz currently conducts his doctoral research at the Information Systems Department of Freie Universität Berlin. His work considers uncertain capacity as a challenge for resilient airline revenue management. Sebastian Vock conducted his doctoral research at the Information Systems Department of Freie Universität Berlin. His work concentrated on revenue management for flexible products when customers can state preferences. In his current position at Opremic solutions, he designs custom analytic solutions to valuate products and services.

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Section: Offering Flexible Productssupporting

confidence: 57%

Resilient revenue management: a literature survey of recent theoretical advances

Cleophas

Kadatz

Vock³

2017

J Revenue Pricing Manag

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“…For this purpose, they consider a variant of (2.2) where resource allocation does not necessarily take place after the booking horizon, but at an arbitrarily chosen point in time between sale and service provision, and they computationally investigate the impact of different intervals of postponing the final resource allocation on revenue. Also for the capacity control problem, Petrick et al (2010) and subsequently Gönsch et al (2014) focus on the second challenge, using the DLP of (2.2) and extending a classical BPC. In particular, Petrick et al (2010) propose different heuristic approaches to ensure feasibility in real-time without having to resolve the entire feasibility problem for each incoming request.…”

Section: Scientific Contributionsmentioning

confidence: 99%

“…Pflug and Pichler (2016) show how to dynamically decompose the conditional value-at-risk in general multistage stochastic programs, albeit with convex action spaces. Gönsch et al (2014) use this decomposition as starting point for a heuristic approach for the availability control problem with its discrete action space.…”

Section: Introductionmentioning

confidence: 99%

A review of revenue management: Recent generalizations and advances in industry applications

Klein

Koch

Steinhardt

et al. 2020

European Journal of Operational Research

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103

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“…They formulate an SDP and motivate their bid price approach by showing that it is consistent with an optimal solution of the primal linear program. Gönsch et al (2014) define the value of flexibility as the value for the manufacturer of being able to choose the optimal execution mode at the end of the booking horizon instead of allocating it immediately at arrival. Existing DLP models do not consider that flexible products can be re-arranged later and thus underestimate the value of flexibility.…”

Section: Revenue Management In Manufacturingmentioning

confidence: 99%

Revenue management approach to due date quoting and scheduling in an assemble-to-order production system

2015

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In this paper, we consider demand management decisions for an assembleto-order production system in which both the availability of intermediate material and assembly capacity are limited. For each incoming order, the manufacturer must decide whether to accept it and what due date to quote for an accepted order. The actual assembly dates are still subject to change after these decisions, and a production schedule must be maintained to guarantee that the quoted due dates are met. Therefore, the decisions on accepting orders and quoting due dates must be made with incomplete knowledge of the actual resources used to fulfill the orders. To address these factors, we model this situation and develop a novel revenue management approach using bid prices. An extensive numerical study demonstrates the good performance of the proposed approach in comparison with benchmark algorithms and an ex-post optimal solution applied over a wide range of different supply and demand scenarios. Our results suggest that the consideration of assembly capacity constraints is more vital than the consideration of intermediate material constraints in our test cases.

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Revenue management with flexible products: The value of flexibility and its incorporation into DLP-based approaches

Cited by 21 publications

References 41 publications

Resilient revenue management: a literature survey of recent theoretical advances

Resilient revenue management: a literature survey of recent theoretical advances

A review of revenue management: Recent generalizations and advances in industry applications

Revenue management approach to due date quoting and scheduling in an assemble-to-order production system

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