Industrial Engineering Journal

Industrial Engineering Journal

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A Modified Design-of-Experiment Approach to Optimize Profit of Electric Vehicle Lease for Subscription Pricing

  

  1. School of Mechanical Engineering, Shanghai Jiao Tong University,Shanghai 200240 , China
  • Online:2016-04-30 Published:2016-05-27

Abstract:

A profit model of subscription pricing for electric vehicle (EV) rental service system is constructed, by considering the bottleneck of consumers’ arrival rate, the features of consumers deciding to choose service or not according to their perceived service value and characteristics of EVs. In order to maximize profit, a modified design-of-experiment (DOE) method is used to solve the model. First, optimized profit and the corresponding values of factors are obtained by conducting traditional DOE method. Then, value intervals of factors to achieve optimal profit are determined more precisely according to monotonicity of profit function on the optimal values of factors. Finally, more optimal results are obtained by conducting DOE method according to the new value intervals of factors while keeping the same value levels of each factor. An example compares two profit results of DOE methods before and after being modified and shows that the profit obtained by conducting the modified DOE method is more optimal, demonstrating effectiveness and practicability of the model

Key words: electric vehicle lease, subscription pricing, modified design-of-experiment method, profit optimization
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