Model for Monitoring Pricing Mechanism by among Beta Coefficient OEE and MC

Businesses producing in small quantities and high diversity have used MC pricing because of market competition. To reduce the risk to profit with availability heuristic, dependent variables fusion can be adopted by using MC pricing to correspond to the over all equipment effectiveness (OEE). This approach reflects the dynamic game in a timely independent variable manner based on rolled through put yield measures. The OEE comprises indexes as quality (Q), performance (P), and availability(A). These three indexes reconcile the MC in optimization of marginal revenue (MR). In practice, shop floor management measures key indexes of final yield and utilization; the objective is to eliminatemis applied and static pricing problem by using beta coefficient. The correspondence of among the beta coefficient, OEE and MC is deduced and verified in this paper, the model uses Lingo to calculate the quotient as the beta coefficient found by OEE dividing indexes of P*A*Q. This realizes dynamic examination and monitor of cost difference under individual MC. One case study is employed to explain the MC pricing strategy in industry.

Keywords: Beta coefficient, OEE, MC, MR, Through put yield.