Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory

Jahnke H, Chwolka A, Simons D (2005)
DECISION SCIENCES 36(1): 1-32.

Zeitschriftenaufsatz | Veröffentlicht | Englisch
 
Download
Es wurden keine Dateien hochgeladen. Nur Publikationsnachweis!
Autor*in
Jahnke, HermannUniBi; Chwolka, A; Simons, D
Abstract / Bemerkung
The subject of this article is the simultaneous choice of product price and manufacturing capacity if demand is stochastic and service-level sensitive. In this setting, capacity as well as price have an impact on demand because several aspects of service level depend on capacity. For example, delivery time will be reduced if capacity is increased given a constant demand rate. We illustrate the relationship between service level, capacity, and demand reaction by a stylized application problem from the after-sales services industry. The reaction of customers to variations in service level and price is represented by a kinked price-demand-rate function. We first derive the optimal price-capacity combination for the resulting decision problem under full information. Subsequently, we focus on a decision maker (DM) who lacks complete knowledge of the demand function. Hence the DM is unable to anticipate the service level and consequently cannot identify the optimal solution. However, the DM will acquire additional information during the sales process and use it in subsequent revisions of the price-capacity decision. Thus, this decision making is adaptive and based on experience. In contrast to the literature, which assumes certain repetitive procedures somewhat ad hoc, we develop an adaptive decision process based on case-based decision theory (CBDT) for the price-capacity problem. Finally, we show that a CBDT DM in our setting eventually finds the optimal solution, if the DM sets the price based on absorption costs and adequately adjusts the capacity with respect to the observed demand.
Erscheinungsjahr
2005
Zeitschriftentitel
DECISION SCIENCES
Band
36
Ausgabe
1
Seite(n)
1-32
ISSN
0011-7315
Page URI
https://pub.uni-bielefeld.de/record/1605072

Zitieren

Jahnke H, Chwolka A, Simons D. Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory. DECISION SCIENCES. 2005;36(1):1-32.
Jahnke, H., Chwolka, A., & Simons, D. (2005). Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory. DECISION SCIENCES, 36(1), 1-32. doi:10.1111/j.1540-5915.2005.00064.x
Jahnke, H., Chwolka, A., and Simons, D. (2005). Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory. DECISION SCIENCES 36, 1-32.
Jahnke, H., Chwolka, A., & Simons, D., 2005. Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory. DECISION SCIENCES, 36(1), p 1-32.
H. Jahnke, A. Chwolka, and D. Simons, “Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory”, DECISION SCIENCES, vol. 36, 2005, pp. 1-32.
Jahnke, H., Chwolka, A., Simons, D.: Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory. DECISION SCIENCES. 36, 1-32 (2005).
Jahnke, Hermann, Chwolka, A, and Simons, D. “Coordinating service-sensitive demand and capacity by adaptive decision making: An application of case-based decision theory”. DECISION SCIENCES 36.1 (2005): 1-32.

Export

Markieren/ Markierung löschen
Markierte Publikationen

Open Data PUB

Web of Science

Dieser Datensatz im Web of Science®

Suchen in

Google Scholar