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

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  • Michael J. Dixon
  • Gary M. Thompson

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.

Suggested Citation

  • Michael J. Dixon & Gary M. Thompson, 2016. "Bundling and Scheduling Service Packages with Customer Behavior: Model and Heuristic," Production and Operations Management, Production and Operations Management Society, vol. 25(1), pages 36-55, January.
    • Handle: RePEc:bla:popmgt:v:25:y:2016:i:1:p:36-55
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    File URL: http://hdl.handle.net/10.1111/poms.2016.25.issue-1
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    Cited by:

    1. Wu, Lingxiao & Yang, Dong & Wang, Shuaian & Yuan, Yun, 2020. "Evacuating offshore working barges from a land reclamation site in storm emergencies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 137(C).
    2. Aparupa Das Gupta & Uday S. Karmarkar & Guillaume Roels, 2016. "The Design of Experiential Services with Acclimation and Memory Decay: Optimal Sequence and Duration," Management Science, INFORMS, vol. 62(5), pages 1278-1296, May.
    3. Li, Yifu & Qi, Xiangtong, 2022. "A geometric branch-and-bound algorithm for the service bundle design problem," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1044-1056.
    4. Manel Baucells & Lin Zhao, 2020. "Everything in Moderation: Foundations and Applications of the Satiation Model," Management Science, INFORMS, vol. 66(12), pages 5701-5719, December.
    5. Ioannis Bellos & Stylianos Kavadias, 2021. "Service Design for a Holistic Customer Experience: A Process Framework," Management Science, INFORMS, vol. 67(3), pages 1718-1736, March.

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