Incorporating manufacturing lead times in joint production–marketing models: A review and some future directions

Incorporating manufacturing lead times in joint production–marketing models: A review and some future directions

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Article ID: iaor20091028
Country: Netherlands
Volume: 161
Issue: 1
Start Page Number: 171
End Page Number: 188
Publication Date: Jul 2008
Journal: Annals of Operations Research
Authors: ,
Abstract:

In many industries the pricing of a product over time can be used to manage demand for the product. Lead time, or promised delivery time is often a significant factor in price negotiations. However, the production planning literature has largely treated pricing decisions as exogeneous while focusing on the allocation of production capacity between products over time. On the other hand, the marketing literature has generally ignored the effects of capacity constraints and focused on the effects of pricing. In this paper, we begin by reviewing the existing literature on integrative production–marketing research, focusing on those models that consider lead times and capacity.

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