Article ID: | iaor2007651 |
Country: | Netherlands |
Volume: | 171 |
Issue: | 1 |
Start Page Number: | 153 |
End Page Number: | 169 |
Publication Date: | May 2006 |
Journal: | European Journal of Operational Research |
Authors: | Griffin Paul M., Keskinocak Pinar, Charnsirisakskul Kasarin |
Keywords: | supply & supply chains |
This paper studies a problem faced by a manufacturer who has the ability to set prices to influence demand, reject orders, and set leadtimes or due-dates for accepted orders. We present decision models that integrate pricing and production decisions for the cases where the manufacturer charges the same price or different prices to different customers. Through numerical analyses, we present insights regarding the benefits of price customization, leadtime, and inventory flexibilities, in various demand environments.