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: | Uzsoy Reha, Upasani Abhijit |
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.