Bid price-based revenue management approaches in manufacturing industries

29 April 2016

We look at an assembly and test facility in the semiconductor industry. Here, wafers and other parts are processed and assembled to finished chips in a facility, where the limiting resources are production capacity (due to costly equipment) and wafer inventory (due to risk of obsolescence). In peak times, demand exceeds capacity and the firm has to decide which orders to schedule during the peak time and which orders receive a due date after the peak time. During the peak time, products can be sold at higher prices compared to the after-peak time. Additionally, competitors might steal orders scheduled with a very long lead time leading to reduced expected profits of these orders. So, for the firm, it is more profitable to schedule orders in the peak time. This leads to a revenue management problem with capacity and raw material constraints. Stochastic orders are received over time and the task is to decide which orders to schedule in the peak time and which orders to schedule in the after-peak time taking into account order specific properties (e.g., profit of the order), available production capacity, available inventory of wafers, and the forecasted demand.

Refereed publications

Guhlich, H., M. Fleischmann, L. Mönch, and R. Stolletz (2018): A clearing function based bid-price approach to integrated order acceptance and release decisions. Forthcoming in European Journal of Operational Research, 268 (1), 243–254

Guhlich, H., M. Fleischmann, and R. Stolletz (2015): Revenue management approach to due date quoting and scheduling in an assemble-to-order production system. OR Spectrum 37 (4), 951–982.

Presentations at conferences, workshops, and research seminars

Guhlich, H., M. Fleischmann, and R. Stolletz (2015): Online order acceptance and scheduling in a multi-stage production system. 25. Workshop für Quantitative Betriebs­wirtschafts­lehre, Schwerte, March 2015.

Guhlich, H., M. Fleischmann, and R. Stolletz (2014): Revenue management in a complex production environment. Brownbag Seminar Operations Management & Operations Research, Mannheim, November 2014.

Guhlich, H., M. Fleischmann, R. Stolletz, and L. Moench (2014): Revenue management in a multi-stage ATO production environment. OR 2014, Aachen, 2014.

Guhlich, H., R. Stolletz, and M. Fleischmann (2013): Revenue management for assemble-to-order manufacturing. EURO 2013, Rome, Italy, July 2013.

Guhlich, H. and R. Stolletz (2013): Revenue Management for assemble-to-order companies. Guest lecture at Fern­Universität in Hagen, Hagen, June 2013.

Guhlich, H., M. Fleischmann, and R. Stolletz (2013): Revenue management in production with material and production constraints. 23. Workshop für Quantitative Betriebs­wirtschafts­lehre, Altleiningen, February 2013.

Guhlich, H., M. Fleischmann, and R. Stolletz (2012): Revenue Management in production systems with capacity and raw material constraints. Brownbag Seminar Operations Management & Operations Research, Mannheim, March 2012.

Guhlich, H. and R. Stolletz (2012): Revenue Management in production systems with capacity and raw material constraints. 4. Forschungs­seminar für Supply Chain Management und Produktion, Obergurgl, Austria, March 2012.

Guhlich, H. and M. Fleischmann (2012): Revenue Management in ATO production environments. Demand Fulfillment Workshop, Mannheim, February 2012.

Education

10/2005 – 03/2011
Studies in Mathematics, University of Bonn

08/1995 – 06/2004
Abitur, Gymnasium Essen-Über­ruhr

Professional experience

06/2011 – 05/2016
Research Assistant, Chair of Production Management (Prof. Dr. Stolletz) and Chair of Logistics and Supply Chain Management (Prof. Dr. Fleischmann), University of Mannheim

02/2008 – 03/2011
Student Assistant, Research Institute for Discrete Mathematics, University of Bonn

04/2005 – 07/2005
Intern­ship, BASF, Shanghai, China