Decision Support Systems and Intelligent Systems 7th Edition by Efraim Turban

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By Efraim Turban

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14]. A comprehensive overview over capacity and price control methods (and the state-of-the-arts) is given in various contributions to RM (see for example Tscheulin/Lindenmeier [2003]; Talluri/van Ryzin [2004]; Phillips [2005]). Specification of an objective system for a SCPC ƒ 29 Minimization of idle over-all capacity The first objective may imply the complete allocation of the over-all capacity to the most profitable class. If the demand for this class in the planning period, however, is below the over-all capacity, idle capacities result with the consequence of revenue losses.

However, the solution here does not need an explicit division of the decision problem to sub tasks. A central solution for SCPC seems reachable. In multi-criteria decision-making, a decision has consequences for multiple objectives. As far as all consequences and the preferred satisfaction levels are known, an objective system can be formulated. 28 Conception for a simultaneous capacity and price control to a definite decision, the next important objective is used [Adam 1993]48. g. maximization of sales of profitable goods under the constraint that not more than 10% idle capacity is left at the end of the period)49.

Qualitative and quantitative forecasting techniques can be distinguished. In this context, especially quantitative methods are relevant. Examples are exponential smoothing, regressions or various autoregressive and moving-average methods [Lancaster/Salkauskas 1986; Schlittgen/Streitberg 1987; Bamberg/Baur 1998, pp. 217; Tempelmeier 2005]. 22 Conception for a simultaneous capacity and price control ervation price structure is usually higher in premium classes, the information regarding the differing willingness to pay among the customers also has to be determined.

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