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Stochastic Optimization of Hybrid Product Programs with Prepaid Contracts

Author

Listed:
  • Alexander Baumeister

    (Saarland University)

  • Holger Hermanns

    (Saarland University)

  • Ralf Jung

    (ETH Zurich)

Abstract

Prepaid contracts as elements of hybrid products offer the provider greater revenue security, however, the stochastic call-off behavior of customers complicates planning the capacity provision and requires a chance-constraint program. As this is usually hard to solve, the scenario approach by Calafiore and Campi could be an option. Hence, we present the corresponding modeling and evaluate it using the example of a product program with prepaid fixed, prepaid free quota, and pay-per-use contracts.

Suggested Citation

  • Alexander Baumeister & Holger Hermanns & Ralf Jung, 2025. "Stochastic Optimization of Hybrid Product Programs with Prepaid Contracts," Lecture Notes in Operations Research,, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-92575-7_55
    DOI: 10.1007/978-3-031-92575-7_55
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