Price-Production Decisions with Deterministic Demand

Published Online:https://doi.org/10.1287/mnsc.16.11.747

The problem of simultaneously making price and production decisions for a single product with a known deterministic demand function is considered. The objective is to maximize profit, and backorders are not allowed. Results which reduce the computations necessary for the pricing decision are given, and planning horizons are identified as in previous inventory research. These results are combined into an efficient forward algorithm.

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