TY - JOUR
T1 - Optimal control of price and production in an assemble-to-order system
AU - Feng, Youyi
AU - Ou, Jihong
AU - Pang, Zhan
PY - 2008/7
Y1 - 2008/7
N2 - We study the optimal control of an assembly system that produces one assembled-to-order final product with multiple made-to-stock components and sells it at variable price. It is shown that a threshold control on component production, product price, and product orders maximizes total discounted profit over an infinite horizon. © 2008 Elsevier B.V. All rights reserved.
AB - We study the optimal control of an assembly system that produces one assembled-to-order final product with multiple made-to-stock components and sells it at variable price. It is shown that a threshold control on component production, product price, and product orders maximizes total discounted profit over an infinite horizon. © 2008 Elsevier B.V. All rights reserved.
KW - Assemble-to-order system
KW - Markov decision process
KW - Pricing
UR - http://www.scopus.com/inward/record.url?scp=46449106330&partnerID=8YFLogxK
UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-46449106330&origin=recordpage
U2 - 10.1016/j.orl.2008.01.012
DO - 10.1016/j.orl.2008.01.012
M3 - RGC 21 - Publication in refereed journal
SN - 0167-6377
VL - 36
SP - 506
EP - 512
JO - Operations Research Letters
JF - Operations Research Letters
IS - 4
ER -