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...

Full description

Bibliographic Details
Main Authors: Caccetta, Louis, Mardaneh, Elham
Format: Journal Article
Published: Yokohama Publishers 2012
Online Access:http://www.ybook.co.jp/online2/oppjo/accept/pjoc310-1109s.pdf
http://hdl.handle.net/20.500.11937/29564
_version_ 1848752837964595200
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 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.
first_indexed 2025-11-14T08:14:58Z
format Journal Article
id curtin-20.500.11937-29564
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T08:14:58Z
publishDate 2012
publisher Yokohama Publishers
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-295642017-01-30T13:13:46Z Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand 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 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. 2012 Journal Article http://hdl.handle.net/20.500.11937/29564 http://www.ybook.co.jp/online2/oppjo/accept/pjoc310-1109s.pdf Yokohama Publishers restricted
spellingShingle Caccetta, Louis
Mardaneh, Elham
Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand
title Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand
title_full Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand
title_fullStr Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand
title_full_unstemmed Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand
title_short Joint Pricing and Production Planning of Multi-period Multi-product Systems with Uncertainty in Demand
title_sort joint pricing and production planning of multi-period multi-product systems with uncertainty in demand
url http://www.ybook.co.jp/online2/oppjo/accept/pjoc310-1109s.pdf
http://hdl.handle.net/20.500.11937/29564