Integrated production planning and pricing by segmentation of customers based on CLV

The lot-sizing and pricing problem is one of the most indispensable subjects which can lead to great challenge formanufacturer and appropriate decision about this can highly effect on the profitability of organizations. The questionshould be answered is that how the amount of products and the price of goods can affect simultaneously onprofitability. The second question which should be answered is which policy should be chosen to evaluate the value ofproducts in each period. At this research, production and pricing units are playing games (Game theory based) againsteach other. In the first place, pricing unit states best price without considering production planning decision formaximizing revenue of factory. In this game, information is accessible for all players. Now, with consideration ofknowledge about best price vector, production planning declares the optimum price vector. These two players continuetheir game until reaching to Nash equilibrium. It should be mentioned that our model is approved by running a smallsize model in GAMS software packages and comparing with the answer of genetic algorithm (GA).