Dynamic Pricing and Scheduling for the Coordination of a One-of-a-kind Production Supply Chain

Zhang, Jian

Dynamic Pricing and Scheduling for the Coordination of a One-of-a-kind Production Supply Chain

atmire.migration.oldid	1349
dc.contributor.advisor	Tu, Yiliu
dc.contributor.author	Zhang, Jian
dc.date.accessioned	2013-09-13T17:57:07Z
dc.date.available	2013-11-12T08:00:10Z
dc.date.issued	2013-09-13
dc.date.submitted	2013	en
dc.description.abstract	In this thesis work, we study the dynamic pricing strategy (DPS) for different cases and its influences on supply chain coordination. First, we study a DPS for a one-of-a-kind production (OKP) firm with two classes of orders (due-date guaranteed and due-date unguaranteed). We model the DPS using Bellman equation and compare it with a static pricing strategy (SPS). Second, we study the pricing problem for a third-party-logistics (3PL) provider that provides warehousing and less-than-truckload (LTL) transportation services. We develop a stochastic-nonlinear-programming (SNLP) model which computes the optimal freight rates for different delivery dates incorporating the 3PL provider's current holding cost and available transportation capacity. We develop an adjusted multinomial logit (MNL) function to predict customer choices so that our SNLP model can obtain near optimal freight rate settings. Finally, we study dynamic pricing based on a practical OKP firm which is currently employing a SPS. For the three cases, we show the increase of the price-setting firm's profit, customer and social welfare when DPS is employed through simulation, and consequently show the DPS's influence on the performance of the supply chain. We also develop a scheduling method for a manufacturer whose suppliers offer different delivery times at different prices. We abstract the problem to a one-machine scheduling problem which is featured by: (a) the release date of each job is compressible and stochastic, (b) each job has to be delivered before its due date (deadline) and (c) the manufacturer can expedite the production with costly overtime. The target is to minimize the total cost including the compressing cost and the overtime production cost. We coin a concept of a job's late-release-impact factor (LRIF) and we propose a LRIF based heuristic algorithm. Through the numerical test, we shows that the LRIF based algorithm can obtain a better schedule comparing to the ones that are commonly used in practice. By this thesis work, we are trying to integrate an OKP supply chain, which is critical to reduce the cost of OKP companies.	en_US
dc.identifier.citation	Zhang, J. (2013). Dynamic Pricing and Scheduling for the Coordination of a One-of-a-kind Production Supply Chain (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/25759	en_US
dc.identifier.doi	http://dx.doi.org/10.11575/PRISM/25759
dc.identifier.uri	http://hdl.handle.net/11023/950
dc.language.iso	eng
dc.publisher.faculty	Graduate Studies
dc.publisher.institution	University of Calgary	en
dc.publisher.place	Calgary	en
dc.rights	University of Calgary graduate students retain copyright ownership and moral rights for their thesis. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission.
dc.subject	Management
dc.subject	Marketing
dc.subject	Operations Research
dc.subject.classification	supply chain management	en_US
dc.subject.classification	decentralized coordination	en_US
dc.subject.classification	dynamic pricing	en_US
dc.subject.classification	stochastic scheduling	en_US
dc.title	Dynamic Pricing and Scheduling for the Coordination of a One-of-a-kind Production Supply Chain
dc.type	doctoral thesis
thesis.degree.discipline	Mechanical and Manufacturing Engineering
thesis.degree.grantor	University of Calgary
thesis.degree.name	Doctor of Philosophy (PhD)
ucalgary.item.requestcopy	true