Revenue Management in Make-To-Order Manufacturing: Case Study of Capacity Control at ThyssenKrupp VDM

Paper Details

Authors:

DOI: 10.1007/BF03342721

Journal: Business Research

Year: 2010

Publisher: Springer

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 30

Abstract

While revenue management (RM) is traditionally considered a tool of service operations, RM shows considerable potential for application in manufacturing operations. The typical challenges in make-to-order manufacturing are fixed manufacturing capacities and a great variety in offered products, going along with pronounced fluctuations in demand and profitability. Since Harris and Pinder in the mid-90s, numerous papers have furthered the understanding of RM theory in this environment. Nevertheless, results to be expected from applying the developed methods to a practical industry setting have yet to be reported. To this end, this paper investigates a possible application of RM at ThyssenKrupp VDM, leading to considerable improvements in several areas. © 2010, The Author(s).

Keywords

capacity control; linear programming applications; make-to-order; manufacturing; steel industry

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