DSS Model for Profit Maximization at Customer Enquiry Evaluation Stage

M. H. Xiong a, S. B. Tor a, b, Rohit Bhatnagar a, c and S. Venkat a

a Singapore-MIT Alliance, NTU-SMA Office, 50 Nanyang Avenue, Singapore, 639798

b School of Mechanical and Production Engineering, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798

c Business School, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798

MRPII 39

Abstract —

This paper presents an optimal method and a heuristic approach which aims at maximizing the profit when responding to a set of customer enquiries under limited capacity.

The model takes into consideration the quantity of available-to-promise (ATP) which measures the capability to fill customer orders, along with enquiry quantity and product price.

The optimal method and the heuristic approach are tested using ATP, product price and enquiry quantity each at their different levels.

From the example conducted, it is found that (1) the optimal model can help to make appropriate decision for selecting a subset of enquiries, and (2) the heuristic approach can produce a result within 5% from the optimum achieved by optimal method for most parameter settings. 

Keywords: Customer Enquiry; Demand; Decision Making; Capacity