Dynamic due date quotation and production scheduling with multiple customer classes

Date

2023-6-27

Author

Er, Can

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In this thesis, the joint due date quotation and production scheduling problem is studied in a make-to-order environment with multiple customer classes. The due date quotation decisions involve what due date to quote to arriving customers, which are sensitive to the quotes. Production scheduling decisions involve which customer class to serve at a given time. The system is modeled as a discrete-time queue and the problem is modeled as a Markov Decision Process, with the objective of maximizing the total discounted expected profit. The profit is defined as revenue minus the lateness costs, which is incurred as a result of not satisfying the demand of the customers by the quoted due dates. A policy iteration based heuristic algorithm is proposed together with several alternative policies including First-come-first-serve and priority-based schemes. A computational study is conducted to assess the benefits of the alternative policies under different settings and make a comparative analysis of the alternative policies. Several managerial insights are provided which can assist manufacturers to achieve increased profits.

Subject Keywords

Due date quotation, Order acceptance, Admission control, Production scheduling, Markov decision process

URI

https://hdl.handle.net/11511/105094

Collections

Graduate School of Natural and Applied Sciences, Thesis