Revenue Management in Make-To-Order Manufacturing: Case Study of Capacity Control at ThyssenKrupp VDM

While revenue management (RM) is traditionally considered a tool of service operations, RM shows considerable potential for application in manufacturing operations. The typical challenges in make-to-order manufacturing are fixed manufacturing capacities and a great variety in offered products, going along with pronounced fluctuations in demand and profitability. Since Harris and Pinder in the mid-90s, numerous papers have furthered the understanding of RM theory in this environment. Nevertheless, results to be expected from applying the developed methods to a practical industry setting have yet to be reported. To this end, this paper investigates a possible application of RM at ThyssenKrupp VDM, leading to considerable improvements in several areas.

Utilizing the full Capacity of Sorting Systems with new Infeed Technology

Utilisation of sorting systems’ maximum performance demands continuous conveying of goods by infeed lines to sorters. This is the case especially for sorters with one single infeed line, because the sorters’ performance is limited by the performance of the infeed line. Within this paper different infeed line constructions at the Rotary Sorter with diverse performances will be presented. The focus lies on a specific conveying system to synchronise the goods with the sorter by a performance of 6000 pieces per hour with one dynamic infeed line. By this means there is no extensive adjustment control of serial conveyors in the infeed line any longer.