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Revenue Management in a Job-Shop: A Dynamic Programming Approach

by Blazewicz, J., Pesch, E., Sterna, M., Werner, F..

Series: 2003-40, Preprints

90B35 Scheduling theory, deterministic

The paper concerns the revenue management problem where a set of customer demands
of expected size contribute to the company's revenue in an expected amount that is a function of the demand size and importance of the particular customer. To maximize
the company's revenue we are looking for an allocation of the limited resource
capacity over a certain time horizon in order to produce the customer's demand within its given due date.
The problem mentioned can be modeled as the job shop scheduling problem with the late work criteria.
Within the paper, we propose a dynamic programming method, which can be used to solve the problem under
consideration optimally. Moreover, we determine the complexity status of the case analyzed as binary NP-hard.

revenue management, job-shop scheduling, late work criteria, dynamic programming

This paper was published in:
Journal of Schedulin