• Previous Article
    A derivative-free method for solving large-scale nonlinear systems of equations
  • JIMO Home
  • This Issue
  • Next Article
    Congestion control with pricing in the absence of demand and cost functions: An improved trial and error method
January  2010, 6(1): 123-147. doi: 10.3934/jimo.2010.6.123

Joint pricing and production planning for fixed priced multiple products with backorders

1. 

Western Australian Centre for Excellence in Industrial Optimisation, Department of Mathematics and Statistics, Curtin University of Technology, GPO Box U1987, WA, 6845, Australia, Australia

Received  March 2009 Revised  August 2009 Published  November 2009

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 non linear 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.
Citation: Lou Caccetta, Elham Mardaneh. Joint pricing and production planning for fixed priced multiple products with backorders. Journal of Industrial & Management Optimization, 2010, 6 (1) : 123-147. doi: 10.3934/jimo.2010.6.123
[1]

Sushil Kumar Dey, Bibhas C. Giri. Coordination of a sustainable reverse supply chain with revenue sharing contract. Journal of Industrial & Management Optimization, 2020  doi: 10.3934/jimo.2020165

2019 Impact Factor: 1.366

Metrics

  • PDF downloads (36)
  • HTML views (0)
  • Cited by (3)

Other articles
by authors

[Back to Top]