Finite-capacity scheduling-based planning for revenue-based capacity management |
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| Institution: | 1. LIMICS, Université Paris 13, Sorbonne Paris Cité, 93017 Bobigny, France;2. INSERM UMRS 1142, UPMC Université Paris 6, Sorbonne Universités, Paris, France;3. Dept. of primary care, Université Paris Descartes, Société de Formation Thérapeutique du Généraliste (SFTG), Paris, France;1. Department of Industrial and Mathematical Engineering, Polytechnique Montreal, 2900 Edouard Montpetit Blvd, Montreal, QC H3T 1J4 Canada;2. School of Mathematics, University of Edinburgh, Edinburgh EH9 3FD, United Kingdom;3. ExPretio Technologies, 4446 St Laurent Blvd, Montreal, Quebec H2W 1Z5, Canada;1. Georgia Institute of Technology, Scheller College of Business, 800 West Peachtree St., NW Atlanta, GA 30308, USA;2. Koç University, College of Administrative Sciences and Economics, Rumelifeneri Yolu Sariyer, Istanbul 34450, Turkey |
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| Abstract: | Finite-capacity scheduling can be argued to be a crucial component of revenue-based capacity management. In that case, one way to plan production is to reserve portions of capacity for incoming customer orders as they arrive, in real-time. In such a planning method, the way these work-orders are scheduled affects the useable capacity, due to fragmentation of the time-line. Assuming the work-orders are rejected if they cannot be inserted into the existing schedule, we develop heuristics to minimise the present-value of the cost of rejecting orders and inventory holding cost due to early completion. We perform simulation experiments to compare the performance of these heuristics in addition to some common heuristics used in practice. |
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