Application of Pricing in Flowshop Scheduling

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Yarali, Safar | 2012

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 43044 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Shavandi, Hasan
Abstract:
This research considers coordination of pricing and scheduling decisions in a make-to-order environment. We consider a two machine flowshop environment. The objective is to maximize the total net profit, i.e. revenue minus scheduling cost resulting from pricing and scheduling decisions. Prices of orders are set by the manufacturer and demand is a non-increasing function of price. Two mixed integer linear programming models have been developed for the research problem. As the problem is shown to be NP-Hard, a Metaheuristic algorithm is developed which is combination of two tabu search sub algorithms, one for pricing and the other for scheduling. And to evaluate performance, results from heuristic algorithm are compared with results from the mathematical model. We also investigate the value of coordination of pricing and scheduling decisions by comparing the proposed coordinated approach with common uncoordinated one in which pricing decisions are made without considering their effects on scheduling costs. Results show excellence of coordinated pricing and scheduling approach in comparison to the uncoordinated one
Keywords:
Scheduling ; Pricing ; Mathematical Modeling ; Tabu Search Algorithm ; Flow Shop Scheduling

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