Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand
In this paper, we present a multiperiod model for production planning in a make-to-stock manufacturing system with constant pricing under uncertainty. 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...
| Main Authors: | , |
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| Format: | Journal Article |
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Yokohama Publishers
2012
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| Online Access: | http://www.ybook.co.jp/online2/oppjo/accept/pjoc310-1109s.pdf http://hdl.handle.net/20.500.11937/29564 |
| Summary: | In this paper, we present a multiperiod model for production planning in a make-to-stock manufacturing system with constant pricing under uncertainty. 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 the uncertain price / demand function is chosen from a discrete set of scenarios. As a result of this, the problem becomes a non linear programming problem with the nonlinearities only in the objective function. We develop a robust optimization model for this problem that considers the optimality and feasibility of all scenarios. The robust solution is obtained by solving a series of nonlinear programming problems. We illustrate our methodology with detailed numerical examples. |
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