Integrated market selection and production planning: complexity and solution approaches

• 成果类型: Article
• 署名作者: Van den Heuvel, Wilco; Kundakcioglu, O. Erhun; Geunes, Joseph; Romeijn, H. Edwin; Sharkey, Thomas C.; Wagelmans, Albert P. M.
• 署名单位: Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC; University of Houston System; University of Houston; State University System of Florida; University of Florida; University of Michigan System; University of Michigan; Rensselaer Polytechnic Institute
• 刊物名称: MATHEMATICAL PROGRAMMING
• ISSN/ISSBN: 0025-5610
• DOI: 10.1007/s10107-011-0441-7
• 发表日期: 2012
• 页码: 395-424
• 关键词: coordinating inventory control; Fixed Ordering Cost; pricing strategies; random demand; log n); decisions; algorithm; time; models

摘要

Emphasis on effective demand management is becoming increasingly recognized as an important factor in operations performance. Operations models that account for supply costs and constraints as well as a supplier's ability to influence demand characteristics can lead to an improved match between supply and demand. This paper presents a class of optimization models that allow a supplier to select, from a set of potential markets, those markets that provide maximum profit when production/procurement economies of scale exist in the supply process. The resulting optimization problem we study possesses an interesting structure and we show that although the general problem is -complete, a number of relevant and practical special cases can be solved in polynomial time. We also provide a computationally very efficient and intuitively attractive heuristic solution procedure that performs extremely well on a large number of test instances.