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We consider an assemble-to-order system with a high volume of prospective customers arriving per unit time. Our objective is to maximize expected infinite horizon discounted profit by choosing product prices, component production capacities, and a dynamic policy for sequencing customer orders...
Persistent link: https://www.econbiz.de/10005818972
We consider an assemble-to-order system with a high volume of prospective customers arriving per unit time. A companion paper established that with optimal product prices, component production capacity, and sequencing of orders for assembly, the system can be approximated by a diffusion process...
Persistent link: https://www.econbiz.de/10005818995
Many service providers offer customers the choice of either waiting in a line or going offline and returning at a dynamically determined future time. The best-known example is the FASTPASS<sup>®</sup> system at Disneyland. To operate such a system, the service provider must make an upfront decision on how...
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Motivated by a $2.2 billion inventory write-off by Cisco Systems, we investigate how duplicate orders can lead a manufacturer to err in estimating the demand rate and customers' sensitivity to delay, and to make faulty decisions about capacity investment. We consider a manufacturer that sells...
Persistent link: https://www.econbiz.de/10009214203
We study cross-selling operations in call centers. The following questions are addressed: How many customer-service representatives are required (staffing), and when should cross-selling opportunities be exercised (control) in a way that will maximize the expected profit of the center while...
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