Requirements Planning with Pricing and Order Selection Flexibility

Joseph Geunes · H. Edwin Romeijn · Kevin Taaffe

73 citations0/0 files storedOperations Research

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Supply Chain and Inventory Management Scheduling and Optimization Algorithms Optimization and Mathematical Programming

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.

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1989Handbooks in operations research and management science 1958Dynamic Version of the Economic Lot Size Model 2004Dynamic Version of the Economic Lot Size Model 1994Optimal Dynamic Pricing of Inventories with Stochastic Demand over Finite Horizons 1969A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System—A Network Approach 1970Price-Production Decisions with Deterministic Demand 1978An Algorithm for the Dynamic Lot-Size Problem with Time-Varying Production Capacity Constraints 1972A Facilities in Series Inventory Model with Nested Schedules

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