Responsible
- Dr. Matthias Wichmann
- André Hintsches
Project Partners
- ThyssenKrupp VDM GmbH
Initial Situation and Problem
In the iron and steel industry, as in many industry branches, a short-term adoption of mid-term production capacity to a stochastic and volatile demand is not possible due to the necessary time lag and resulting downtime. This lack of flexibility results in the importance of efficient capacity allocation to maximize the overall contribution margin. An increasing popular instrument to control capacity allocation in the service industry is the so-called revenue management (or yield management). In some industry branches it is employed as the main instrument to maximize revenue.
Objective and Approach
The first phase of the projects includes three consecutive objectives:
- Conception and development of a tool for decision support for a bottleneck-oriented evaluation of customer requests for a chosen product area of ThyssenKrupp VDM.
- Implementation and evaluation of the developed tool in form of a run-capable prototype.
- Conceptual extension and evaluation of the developed approach for deceision support for further product areas.
Based on the objectives of the first phase, the objectives of the second phase include the conception and prototypical implementation of a dnymic bid-price-management to increase the robustness of the revenue-management-tool.
The third phase of the project includes the intensive monitoring of the roll-out and implementation of the revenue management tool in the context of an APS-system.
Further Information
So far, the KAREMA-project lead to the following publications:
- HINTSCHES, A.; SPENGLER, T.S.; VOLLING, T.; WITTEK, K.; PRIEGNITZ, G. (2010): Revenue Management in Make-To-Order Manufacturing: Case Study of Capacity Control at ThyssenKrupp VDM, BuR - Business Research, Vol. 3, Iss. 2, 173-19.
- SPENGLER, T.; VOLLING, T.; HINTSCHES, A. (2008): Integration von Revenue Management Konzepten in die Auftragsannahme, Zeitschrift für Betriebswirtschaft, Special Issue 4, 125-151.
- SPENGLER, TH.; HINTSCHES, A.; VOLLING, TH. (2008): Herausforderungen und Potenziale des Einsatzes von Revenue Management am Beispiel eines Unternehmens der Buntmetallindustrie, OR News, Ausgabe 33.