Bundling and Scheduling Service Packages with Customer Behavior: Model and Heuristic

Michael J. Dixon and Gary M. Thompson

Production and Operations Management, 2016, vol. 25, issue 1, 36-55

Abstract: type="main" xml:id="poms12409-abs-0001">

Past researchers have found evidence that customers consider the sequence of event utility when evaluating past and future service experiences. Specifically, the evidence confirms that the placement of a peak event, the utility of the last event, and the slope of event utility over time all affect customer behavior and perception. We formulate an optimization problem with a focus on optimizing schedule sequence characteristics in order to maximize customer experiences. We discuss possible contexts in which this type of scheduling might be considered and, as an example, present a particularly complex model of a world-renowned performing arts venue. We solve the problem with a simulated annealing algorithm and further discuss the complexity and opportunities associated with this type of scheduling effort.

Date: 2016
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