Requirements Planning with Pricing and Order Selection Flexibility
Joseph Geunes, H. Edwin Romeijn, Kevin Taaffe
Operations Research · 2006 · Volume 54 · Issue 2
Abstract
Past requirements-planning research has typically assumed that the firm’s demands are determined prior to production planning. In contrast, we explore a single-stage planning model that implicitly decides, through pricing decisions, the demand levels the firm should satisfy in order to maximize contribution to profit. We briefly discuss solution methods and properties for these problems when production capacities are unlimited. The key result of this work is a polynomial-time solution approach to the problem under time-invariant finite production capacities and piecewise-linear and concave revenue functions in price.
Keywords
production/scheduling, planning, inventory/production, policies, marketing/pricing, programming, integer, applications
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