Application of dynamic pricing for variant production using reinforcement learning

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

In the context of variant production, the increasing volatility and customer requirements challenge the profitability of manufacturers. A promising approach to mitigate these challenges could be a dynamic pricing. An intelligent design of a continuous delivery-time-price function allows customers to choose based on their preferences and demand may be shifted to level any peaks. This way, profit, service level, and capacity usage could be improved. This work develops a dynamic pricing model based on reinforcement learning applied to a use case of the automation industry. The results show that the dynamic pricing model performs better than current methods in practice.

Original languageEnglish
JournalCIRP Journal of Manufacturing Science and Technology
Volume60
Pages (from-to)248-259
Number of pages12
ISSN1755-5817
DOIs
Publication statusPublished - 09.2025

Bibliographical note

Publisher Copyright:
© 2025 The Authors

    Research areas

  • Capacity levelling, Dynamic pricing, Reinforcement learning, Variant production, Volatility
  • Engineering

Recently viewed

Publications

  1. Tracking control of a piezo-hydraulic actuator using input-output linearization and a Cascaded Extended Kalman Filter structure
  2. Concept for Process Parameter-Based Inline Quality Control as a Basis for Pairing in a Production Line
  3. Human–learning–machines: introduction to a special section on how cybernetics and constructivism inspired new forms of learning
  4. Mapping the intersection of planetary boundaries and environmentally extended input-output analysis: A systematic literature review
  5. The delay vector variance method and the recurrence quantification analysis of energy markets
  6. Application of dynamic pricing for variant production using reinforcement learning
  7. Recognition and approach responses toward threatening objects
  8. A Proposal for Integrating Theories of Complexity for Better Understanding Global Systemic Risks
  9. Order parameters and energies of analytic and singular vortex lines in rotating3He-A
  10. Explicit and Implicit Framing Effects on Product Attitudes When Using Country-of- Origin Cues
  11. Evolutionary cost-tolerance optimization for complex assembly mechanisms via simulation and surrogate modeling approaches
  12. Technological System and the Problem of Desymbolization
  13. Development of a simulative approach in order to estimate the impact of smart services on a production system
  14. A latent state-trait analysis of current achievement motivation across different tasks of cognitive ability
  15. Modeling self-determination theory motivation data by using unfolding IRT
  16. Control oriented modeling of DCDC converters
  17. Analytic reproducibility in articles receiving open data badges at the journal Psychological Science