Dynamic Joint Decision on Price and Delivery Date in MTO Manufacturer Based on Agent

Abstract

In order to maximize the total profit and improve the service level, based on the perspective of queuing theory, a new approach for dynamic joint decision on price and delivery date in Make-to-order (MTO) manufacturing firms using Q-learning algorithm was proposed. Compared with static price and delivery date policy, the simulation results show that the proposed algorithm performs better in total profit and service level. The total profit does not increase with the growing number of accepted orders and the number of accepted orders must match the production capacity.