Simultaneous quotations with capacity planning under contingent orders

Piya Sujan, Takahashi Katsuhiko, Morikawa Katsumi

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)


Quotations represent the initial phase in order acceptance/rejection (OA) decisions. Orders for companies remain contingent on demand until decisions are made which is a critical source of uncertainty. This paper proposes a method that can be used to simultaneously quote the due date and the price of each incoming order when the contingent orders exist. It utilizes probabilistic theory and incorporates some theories of negotiation such as the aspiration level and limit level to generate quotations. Instead of a single quotation, it can be used to generate multiple sets of quotations at the same aspiration level of manufacturer. Numerical example is presented to demonstrate the working mechanism, effectiveness and sensitivity of the proposed method.

Original languageEnglish
Pages (from-to)99-125
Number of pages27
JournalInternational Journal of Operations and Quantitative Management
Issue number2
Publication statusPublished - 2015


  • Acceptance probability
  • Aspiration level
  • Contingent order
  • Quotation

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Information Systems and Management
  • Management of Technology and Innovation


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