Publication Date

2013-12-17

Availability

Open access

Embargo Period

2013-12-17

Degree Type

Dissertation

Degree Name

Doctor of Philosophy (PHD)

Department

Industrial Engineering (Engineering)

Date of Defense

2013-12-09

First Committee Member

Murat Erkoc

Second Committee Member

Shihab Asfour

Third Committee Member

Hernan Awad

Fourth Committee Member

Nazrul Shaikh

Abstract

The present work is the foundation for our line of research, looking for policy solutions for: order acceptance, capacity management with interruptions, pricing, and trade-offs between different assets. The first model represents an organization choosing order fitting and pricing policies for a service company selecting between deals and regular jobs with poisson arrivals. The prices for regular jobs are exogenous, whereas winning the deals depends on pricing bids. We derived and compared optimal pricing for two distinct order acceptance policies under a setting where the server had no queue. We investigated the impact of the system parameters on the optimal policies. In the second part, we extended our analysis to a server that admits queues only for the regular jobs. We proposed optimal state-based pricing for the deals under this setting. In the last part, we integrate inventory management into the order fitting policies, we studied optimal inventory positions for rotables at a maintenance-repair-overhaul company. Our study sheds light to understand trade-offs between inventories, pricing and capacity management. This work originated utilizing real industry cases for each of the models proposed, providing market driven solutions for capacity management needs.

Keywords

order acceptance policies, capacity management, MRO, markov models

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