CAPPLAN: a decision‐support system for planning the pricing and sales effort policy of a salesforce

Abstract

Abstract Describes the decision‐support system CAPPLAN. CAPPLAN has been developed for firms which sell their products through a salesforce to industrial customers or wholesalers and retailers. Explains that in such situations, it is common practice to negotiate the price based on guidelines provided by the sales management. Details how CAPPLAN offers a jointly optimal differentiation of prices and allocation of calling effort across account groups subject to both a limited production capacity and working‐time capacity, and also provides a parametric optimization of prices and calling effort for varying levels of production capacity. Reports how the system has been applied at an industrial photo laboratory selling the development of film and the production of prints through retailers, resulting in a substantial improvement in profits.

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