Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 170, Issue 2, Pages 463-480Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.ejor.2004.06.027
Keywords
production; pricing; lot-sizing; inventory
Ask authors/readers for more resources
In this paper we consider the uncapacitated economic lot-size model, where demand is a deterministic function of price. In the model a single price need to be set for all periods. The objective is to find an optimal price and ordering decisions simultaneously. In 1973 Kunreuther and Schrage proposed an heuristic algorithm to solve this problem. The contribution of our paper is twofold. First, we derive an exact algorithm to determine the optimal price and lot-sizing decisions. Moreover, we show that our algorithm boils down to solving a number of lot-sizing problems that is quadratic in the number of periods, i.e., the problem can be solved in polynomial time. (c) 2004 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available