Title :
A production and pricing decision for deteriorating items with time-varying and price dependent demand rate
Author :
Duan, Yongrui ; Yang, Jin
Author_Institution :
Sch. of Econ. & Manage., Tongji Univ., Shanghai, China
Abstract :
This paper considers the production and pricing problem for deteriorating items with time-varying and price dependent demand rate. In this production system, the production rate is finite and shortages can be backlogged in the same cycle. The demand rate is linearly dependent on time and price over a finite planning horizon. A nonlinear model to minimize the average cost is presented. The proposed nonlinear constrained problem is numerically solved by using the box complex algorithm. As a result, the optimal number of production cycles and price can be determined.
Keywords :
cost reduction; pricing; production planning; average cost minimization; box complex algorithm; finite planning horizon; item deterioration; nonlinear constrained problem; nonlinear model; price dependent demand rate; pricing decision; production decision; production rate; production system; time-varying demand rate; Economics; Educational institutions; Optimization; Pricing; Production; Silicon; Silver; deteriorating items; pricing dependent demand; production and pricing; time-varying;
Conference_Titel :
Artificial Intelligence, Management Science and Electronic Commerce (AIMSEC), 2011 2nd International Conference on
Conference_Location :
Deng Leng
Print_ISBN :
978-1-4577-0535-9
DOI :
10.1109/AIMSEC.2011.6011185
