DSS Model for Profit Maximization at Customer Enquiry Evaluation Stage
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IMST006.pdf
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379.67 KB
Format
Adobe PDF
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abe75fc85946ea13bae1f1da7cc7c6e6
Author(s)
Xiong, M.H.
Tor, Shu Beng
Bhatnagar, Rohit
Venkataramanaiah, S.
Date Issued
January 2004
Series/Report no.
Innovation in Manufacturing Systems and Technology (IMST);
Abstract
This paper presents an optimal method and a heuristic approach which aims at maximizing the profit when responding to a set of customer enquiries under limited capacity. The model takes into consideration the quantity of available-to-promise (ATP) which measures the capability to fill customer orders, along with enquiry quantity and product price. The optimal method and the heuristic approach are tested using ATP, product price and enquiry quantity each at their different levels. From the example conducted, it is found that (1) the optimal model can help to make appropriate decision for selecting a subset of enquiries, and (2) the heuristic approach can produce a result within 5% from the optimum achieved by optimal method for most parameter settings.
Subjects
customer enquiry
demand
decision making
capacity
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