Dynamic Pricing and Lead-Time Quotation for a Multiclass Make-to-Order Queue

Sabri Çelik
Sabri Çelik
[email protected]
Department of Industrial Engineering and Operations Research, Columbia University, New York, New York 10027
Search for more papers by this author
,
Costis Maglaras
Costis Maglaras
[email protected]
Columbia Business School, Columbia University, New York, New York 10027
Search for more papers by this author

Sabri Çelik

[email protected]

Department of Industrial Engineering and Operations Research, Columbia University, New York, New York 10027

Search for more papers by this author

Costis Maglaras

[email protected]

Columbia Business School, Columbia University, New York, New York 10027

Search for more papers by this author

Published Online:1 Jun 2008https://doi.org/10.1287/mnsc.1070.0836

Supplemental Material

mnsc.1070.0836-sm-ec.pdf (145 KB)

Cited by
- Scheduling with due date assignment and placement uncertainty subject to no tardy orders
  26 March 2026 | Optimization and Engineering, Vol. 27, No. 2
- Feature-Driven Priority Queuing
  Simrita Singh,
  Itai Gurvich,
  Jan A. Van Mieghem
  27 May 2026 | Operations Research, Vol. 0, No. 0
- Inventory problems with heterogeneous customers and endogenous demand
  17 April 2026 | Foundations and Trends® in Technology, Information and Operations Management, Vol. 20, No. 1-2
- Dynamic Control of a Make-to-Order System Under Model Uncertainty
  Xu Sun,
  Xiaohan Zhu
  21 July 2025 | Management Science, Vol. 72, No. 3
- On-Demand Service Sharing via Collective Dynamic Pricing
  Mustafa Dogan,
  Alexandre Jacquillat
  11 November 2025 | Manufacturing & Service Operations Management, Vol. 28, No. 2
- Near-Optimal Pricing and Resource Allocation in a Large-Scale Service System
  Zerui Wu,
  Ran Liu,
  Xu Sun
  15 October 2025 | Operations Research, Vol. 74, No. 2
- Drift Control of High-Dimensional Reflected Brownian Motion: A Computational Method Based on Neural Networks
  Baris Ata,
  J. Michael Harrison,
  Nian Si
  19 September 2024 | Stochastic Systems, Vol. 15, No. 2
- Asymptotically optimal energy consumption and inventory control in a make-to-stock manufacturing system
  European Journal of Operational Research, Vol. 320, No. 2
- Dynamic Control of a Make-to-Order System Under Model Uncertainty
  1 January 2025 | SSRN Electronic Journal, Vol. 54
- Admission and routing control of multiple queues with multiple types of customers
  2 November 2023 | IISE Transactions, Vol. 56, No. 11
- Optimal procurement decisions based on smoothing strategy for dual sourcing with different lead times
  Computers & Industrial Engineering, Vol. 196
- Enhancing Make-to-Order Manufacturing Agility: When Flexible Capacity Meets Dynamic Pricing
  6 May 2024 | Production and Operations Management, Vol. 33, No. 6
- A queueing model of dynamic pricing and dispatch control for ride-hailing systems incorporating travel times
  4 February 2024 | Queueing Systems, Vol. 106, No. 1-2
- Should private charging-pile-sharing platforms cooperate with automotive companies under multiple heterogeneities?
  JUSTC, Vol. 54, No. 11
- Optimal Pricing in a Single Server System
  11 August 2023 | ACM Transactions on Modeling and Performance Evaluation of Computing Systems, Vol. 8, No. 4
- Nonlinear pricing in multidimensional context: An empirical analysis of energy consumption
  International Journal of Industrial Organization, Vol. 91
- The Online Retailer’s Randomized Pricing Strategy to Compete With an Offline Retailer
  7 April 2023 | International Journal of Electronic Commerce, Vol. 27, No. 2
- Wait Time–Based Pricing for Queues with Customer-Chosen Service Times
  Chen-An Lin,
  Kevin Shang,
  Peng Sun
  7 July 2022 | Management Science, Vol. 69, No. 4
- An Approximate Analysis of Dynamic Pricing, Outsourcing, and Scheduling Policies for a Multiclass Make-to-Stock Queue in the Heavy Traffic Regime
  Barış Ata,
  Nasser Barjesteh
  27 October 2022 | Operations Research, Vol. 71, No. 1
- Single versus dynamic lead-time quotations in make-to-order systems with delay-averse customers
  2 July 2022 | Annals of Operations Research, Vol. 318, No. 1
- Queueing with priorities and standard service: Stoppable and unstoppable servers
  1 May 2022 | Stochastic Models, Vol. 38, No. 4
- Lead-time quotation and hedging coordination in make-to-order supply chain
  European Journal of Operational Research, Vol. 300, No. 2
- Fair and profitable: How pricing and lead-time quotation policies can help
  European Journal of Operational Research, Vol. 299, No. 3
- Optimal pricing in multi server systems
  Performance Evaluation, Vol. 154
- Pricing in Service Systems with Rational Balking and Abandonment of Time‐Sensitive Customers
  1 February 2022 | Production and Operations Management, Vol. 31, No. 2
- Coordinated Product Pricing and Scheduling Decisions
  20 October 2021
- The effect of contract methods on the lead time of a two-level photovoltaic supply chain: revenue-sharing vs. cost-sharing
  Energy, Vol. 231
- Strategic Timing and Dynamic Pricing for Online Resource Allocation
  Vibhanshu Abhishek,
  Mustafa Dogan,
  Alexandre Jacquillat
  21 January 2021 | Management Science, Vol. 67, No. 8
- Equilibrium strategies and optimal pricing in an online retailing queueing system
  10 February 2020 | Naval Research Logistics (NRL), Vol. 68, No. 5
- Customer rejection to guide lead time quotation and pricing decisions
  19 February 2020 | Journal of the Operational Research Society, Vol. 72, No. 6
- Planning capacity and safety stocks in a serial production–distribution system with multiple products
  European Journal of Operational Research, Vol. 289, No. 2
- Optimal differential subsidy policy design for a workload-imbalanced outpatient care network
  Omega, Vol. 99
- Price and Lead time Disclosure Strategies in Inventory Systems
  1 December 2020 | Production and Operations Management, Vol. 29, No. 12
- Delivery time quotation and pricing in two-stage supply chains: Centralized decision-making with global and local managerial approaches
  European Journal of Operational Research, Vol. 286, No. 1
- Optimizing production capacity and safety stocks in general acyclic supply chains
  Computers & Operations Research, Vol. 120
- Dynamic Price and Lead Time Quotation Strategies to Match Demand and Supply in Make-to-Order Manufacturing Environments
  14 September 2019
- Joint Replenishment and Fulfillment Decisions for Multi-Warehouse Inventory Systems
  SSRN Electronic Journal, Vol. 56
- Integrated pricing and production scheduling of multiple customized products with a common base product
  24 May 2019 | IISE Transactions, Vol. 51, No. 12
- On the effect of overtime and subcontracting on supply chain safety stocks
  Omega, Vol. 89
- Minimal-Variance Distributed Deadline Scheduling in a Stationary Environment
  25 January 2019 | ACM SIGMETRICS Performance Evaluation Review, Vol. 46, No. 3
- The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity
  12 January 2019
- An Overview for Markov Decision Processes in Queues and Networks
  16 October 2019
- Optimising key performance indicator adherence with application to emergency department congestion
  European Journal of Operational Research, Vol. 272, No. 1
- On-Demand Service Sharing with Collective Dynamic Pricing
  SSRN Electronic Journal, Vol. 15
- Price and Leadtime Disclosure Strategies in Inventory Systems
  SSRN Electronic Journal, Vol. 60
- Pricing in Service Systems with Rational Balking and Abandonment of Time-Sensitive Customers
  SSRN Electronic Journal, Vol. 55
- Multidimensional Non-Linear Pricing: Evidence from Energy Consumption with a Mixture Pricing Mechanism
  SSRN Electronic Journal, Vol. 67
- Scheduling Queues with Customer Transfers
  SSRN Electronic Journal, Vol. 25
- Capacity optimization and competition with cyclical and lead-time-dependent demands
  27 January 2018 | Annals of Operations Research, Vol. 271, No. 2
- Effect of setup time reduction on supply chain safety stocks
  Journal of Manufacturing Systems, Vol. 49
- On-Demand Service Platforms
  Terry A. Taylor
  23 July 2018 | Manufacturing & Service Operations Management, Vol. 20, No. 4
- Effect of a lead time-dependent cost on lead time quotation, pricing, and capacity decisions in a stochastic make-to-order system with endogenous demand
  International Journal of Production Economics, Vol. 203
- Dynamic pricing, leadtime quotation and due date based priority dispatching
  7 November 2017 | International Journal of Production Research, Vol. 56, No. 15
- Dynamic Scheduling in a Many-Server, Multiclass System: The Role of Customer Impatience in Large Systems
  Jeunghyun Kim,
  Ramandeep S. Randhawa,
  Amy R. Ward
  11 April 2018 | Manufacturing & Service Operations Management, Vol. 20, No. 2
- Dynamic expediting of an urgent order with uncertain progress
  European Journal of Operational Research, Vol. 267, No. 1
- The Value of Dynamic Pricing in Large Queueing Systems
  Jeunghyun Kim,
  Ramandeep S. Randhawa
  15 December 2017 | Operations Research, Vol. 66, No. 2
- Two-way scheduling optimization of the supply chain in one-of-a-kind production based on dynamic production capacity restrictions
  Journal of Manufacturing Systems, Vol. 47
- Near‐Optimality of Coarse Service Grades for Customer Differentiation in Queueing Systems
  1 March 2018 | Production and Operations Management, Vol. 27, No. 3
- Controlling the Variability of Capacity Allocations Using Service Deferrals
  8 August 2017 | ACM Transactions on Modeling and Performance Evaluation of Computing Systems, Vol. 2, No. 3
- The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity
  Gérard P. Cachon,
  Kaitlin M. Daniels,
  Ruben Lobel
  1 June 2017 | Manufacturing & Service Operations Management, Vol. 19, No. 3
- Optimal revenue management in two class pre-emptive delay dependent Markovian queues
  Applied Mathematical Modelling, Vol. 45
- Dynamic quotation of leadtime and price for a Make-To-Order system with multiple customer classes and perfect information on customer preferences
  European Journal of Operational Research, Vol. 258, No. 1
- Sharing Delay Information in Service Systems: A Literature Survey
  SSRN Electronic Journal, Vol. 22
- Coordination of pricing and leadtime quotation under leadtime uncertainty
  Computers & Industrial Engineering, Vol. 102
- Coping with production time variability via dynamic lead-time quotation
  8 December 2015 | OR Spectrum, Vol. 38, No. 4
- Optimal Price/Lead-Time Menus for Queues with Customer Choice: Segmentation, Pooling, and Strategic Delay
  Philipp Afèche,
  J. Michael Pavlin
  16 February 2016 | Management Science, Vol. 62, No. 8
- Price and Lead Time Quotation for Contract and Spot Customers
  A. Baykal Hafızoğlu,
  Esma S. Gel,
  Pınar Keskinocak
  4 April 2016 | Operations Research, Vol. 64, No. 2
- Vacations
- The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity
  SSRN Electronic Journal, Vol. 58
- Dynamic Scheduling in a Many-Server Multi-Class System: The Role of Customer Impatience in Large Systems
  SSRN Electronic Journal, Vol. 58
- On-Demand Service Platforms
  SSRN Electronic Journal, Vol. 15
- Real-Time Dynamic Pricing for Revenue Management with Reusable Resources and Deterministic Service Time Requirements
  SSRN Electronic Journal, Vol. 36
- A dynamic pricing strategy for a 3PL provider with heterogeneous customers
  International Journal of Production Economics, Vol. 169
- Two Backorder Compensation Mechanisms in Inventory Systems with Impatient Customers
  1 October 2015 | Production and Operations Management, Vol. 24, No. 10
- Integration of capacity, pricing, and lead-time decisions in a decentralized supply chain
  International Journal of Production Economics, Vol. 164
- Re-thinking queue culture: the commodification of thick time
  International Journal of Sociology and Social Policy, Vol. 35, No. 3/4
- Optimal pricing and scheduling control of product shipping
  22 April 2015 | Naval Research Logistics (NRL), Vol. 62, No. 3
- Asymptotically Optimal Dynamic Pricing in Observable Queues
  SSRN Electronic Journal, Vol. 15
- Service operation process optimization research in an outlet of Zhongtong express
- Asymptotic Optimality of Two Service Grades for Customer Differentiation in Queueing Systems
  SSRN Electronic Journal, Vol. 15
- Managing on-demand computing services with heterogeneous customers
- Pricing Time-Sensitive Services Based on Realized Performance
  Philipp Afèche,
  Opher Baron,
  Yoav Kerner,
  3 May 2013 | Manufacturing & Service Operations Management, Vol. 15, No. 3
- Incentive-Compatible Revenue Management in Queueing Systems: Optimal Strategic Delay
  Philipp Afèche,
  1 July 2013 | Manufacturing & Service Operations Management, Vol. 15, No. 3
- Scheduling with compressible and stochastic release dates
  Computers & Operations Research, Vol. 40, No. 7
- On scheduling a multiclass queue with abandonments under general delay costs
  7 September 2012 | Queueing Systems, Vol. 74, No. 1
- Congestion-based leadtime quotation and pricing for revenue maximization with heterogeneous customers
  21 March 2012 | Queueing Systems, Vol. 73, No. 1
- Congestion-Based Lead-Time Quotation for Heterogenous Customers with Convex-Concave Delay Costs: Optimality of a Cost-Balancing Policy Based on Convex Hull Functions
  Mustafa Akan,
  Barı ş Ata,
  Tava Olsen,
  20 November 2012 | Operations Research, Vol. 60, No. 6
- Pricing for production and delivery flexibility in single-item lot-sizing
  Computers & Operations Research, Vol. 39, No. 12
- Optimal quoting of delivery time by a third party logistics provider: The impact of shipment consolidation and temporal pricing schemes
  European Journal of Operational Research, Vol. 221, No. 1
- Research on the response time of supply chain based on the cost-oriented core enterprise
- Pricing and capacity planning decisions for BTO manufacturing based on priority differentiation strategy
- Optimal and heuristic lead-time quotation for an integrated steel mill with a minimum batch size
  European Journal of Operational Research, Vol. 210, No. 3
- Revenue Optimization for a Make-to-Order Queue in an Uncertain Market Environment
  Omar Besbes,
  Costis Maglaras,
  6 May 2009 | Operations Research, Vol. 57, No. 6
- Pricing and lead time joint decisions in two-echelon supply chain with retailers' competition
- Near-Optimal Dynamic Lead-Time Quotation and Scheduling Under Convex-Concave Customer Delay Costs
  Barış Ata,
  Tava Lennon Olsen,
  11 March 2009 | Operations Research, Vol. 57, No. 3
- Dynamic Control of a Make-to-Order, Parallel-Server System with Cancellations
  Melanie Rubino,
  Barış Ata,
  24 September 2008 | Operations Research, Vol. 57, No. 1

Volume 54, Issue 6

June 2008

Pages iv-1211

Article Information

Supplemental Material

Metrics

Information

Received:June 15, 2005
Published Online:June 01, 2008

Cite as

Sabri Çelik, Costis Maglaras, (2008) Dynamic Pricing and Lead-Time Quotation for a Multiclass Make-to-Order Queue. Management Science 54(6):1132-1146.

https://doi.org/10.1287/mnsc.1070.0836

Keywords

PDF download

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Available Issues

Dynamic Pricing and Lead-Time Quotation for a Multiclass Make-to-Order Queue

Supplemental Material

Volume 54, Issue 6

Article Information

Supplemental Material

Metrics

Information

Cite as

Keywords

Sign Up for INFORMS Publications Updates and News