Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders
In this paper, we present a multiperiod model for production planning in a make-to-stock manufacturing system with constant pricing. We consider a multiproduct capacitated setting and introduce a demand-based model where the demand is a function of the price. There is an assumption that the producti...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Published: |
American Institute of Mathematical Sciences
2010
|
| Online Access: | http://hdl.handle.net/20.500.11937/16148 |
| _version_ | 1848749092041129984 |
|---|---|
| author | Caccetta, Louis Mardaneh, Elham |
| author_facet | Caccetta, Louis Mardaneh, Elham |
| author_sort | Caccetta, Louis |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In this paper, we present a multiperiod model for production planning in a make-to-stock manufacturing system with constant pricing. We consider a multiproduct capacitated setting and introduce a demand-based model where the demand is a function of the price. There is an assumption that the production setup costs are negligible. A key part of the model is that backorders are allowed. As a result of this, the problem becomes a nonlinear programming problem with the nonlinearities in both the objective function and some constraints. We develop an algorithm that computes the global optimal production and pricing policy on a finite time horizon. We illustrate the application of the algorithm through a detailed numerical example. |
| first_indexed | 2025-11-14T07:15:26Z |
| format | Journal Article |
| id | curtin-20.500.11937-16148 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:15:26Z |
| publishDate | 2010 |
| publisher | American Institute of Mathematical Sciences |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-161482017-09-13T15:04:06Z Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders Caccetta, Louis Mardaneh, Elham In this paper, we present a multiperiod model for production planning in a make-to-stock manufacturing system with constant pricing. We consider a multiproduct capacitated setting and introduce a demand-based model where the demand is a function of the price. There is an assumption that the production setup costs are negligible. A key part of the model is that backorders are allowed. As a result of this, the problem becomes a nonlinear programming problem with the nonlinearities in both the objective function and some constraints. We develop an algorithm that computes the global optimal production and pricing policy on a finite time horizon. We illustrate the application of the algorithm through a detailed numerical example. 2010 Journal Article http://hdl.handle.net/20.500.11937/16148 10.3934/jimo.2010.6.123 American Institute of Mathematical Sciences unknown |
| spellingShingle | Caccetta, Louis Mardaneh, Elham Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders |
| title | Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders |
| title_full | Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders |
| title_fullStr | Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders |
| title_full_unstemmed | Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders |
| title_short | Joint Pricing and Production Planning for Fixed Priced Multiple Products with Backorders |
| title_sort | joint pricing and production planning for fixed priced multiple products with backorders |
| url | http://hdl.handle.net/20.500.11937/16148 |