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An order admission model is developed to introduce revenue management into MTO B2B in- dustries. This solution is designed to resolve a common order management dilemma faced by manufacturers with severe seasonal demands. Considering the requirement that manufacturing industries be risk averse, the objective is to maximize the expected total revenue under a targeted capacity utilization constraint. The deterministic admission problem and its auxiliary model are presented and solved through an iterative dynamic programming algorithm. Through this algorithm, a reward-threshold order admission policy can be established at the beginning of the planning horizon, helping companies to achieve a balance between profitability and stability.

USING ORDER ADMISSION CONTROL TO MAXIMIZE REVENUE UNDER CAPACITY UTILIZATION REQUIREMENTS IN MTO B2B INDUSTRIES