ABSTRACT

Often times, technical and technological resource limitations do not allow companies to meet their market demand within a fixed period of time. Consistently, they fall short and there is a gap in the production order catalogue so the unfulfilled demand has to be deferred to a future operating period or be lost. Decision making is an important management function that has to be performed through an improved process. Since the early 1990s, order acceptance has had considerable attention in the literature. When a company has a single highly specialized machine, it is common that demand exceeds capacity. Modeling a real situation is an art but it has a scientific basis. A model can be defined as an abstraction of reality where the most important features that need to be studied for a particular problem have been included. This chapter presents a new contribution of order acceptance theory extending the models presented by Trigos and López.