Paper Info
Title
Pricing and Manufacturing Decisions When Demand Is a Function of Prices in Multiple Periods
Abstract
In most deterministic manufacturing decision models, demand is either known or induced by pricing decisions in the period that the demand is experienced. However, in more realistic market scenarios consumers make purchase decisions with respect to price, not only in the current period, but also in past and future periods. We model a joint manufacturing/pricing decision problem, accounting for that portion of demand realized in each period that is induced by the interaction of pricing decisions in the current period and in previous periods. We formulate a mathematical programming model and develop solution techniques. We identify structural properties of our models and develop closed-form solutions and effective heuristics for various special cases of our models. Finally, we conduct extensive computational experiments to quantify the effectiveness of our heuristics and to develop managerial insights.
Year
DOI
Venue
2007
10.1287/opre.1070.0411
Operations Research
Keywords
Field
DocType
manufacturing decisions,pricing decision problem,multiple periods,mathematical programming model,future period,current period,pricing decision,purchase decision,deterministic manufacturing decision model,previous period,joint manufacturing,effective heuristics,uncertainty,marketing,deterministic,pricing
Customer relationship management,Decision problem,Economics,Operations research,Demand curve,Inventory control,Heuristics,Decision model,Deterministic system,Operations management
Journal
Volume
Issue
ISSN
55
6
0030-364X
Citations 
PageRank 
References 
29
1.41
17
Authors
3
Name
Order
Citations
PageRank
Hyun-Soo Ahn111610.32
Mehmet Gümüş2765.38
Philip Kaminsky39510.07