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Published in:
Scope of Problem Coverage and Introduction Read chapter Read first chapter

2012 | OriginalPaper | Chapter

2. Production and Inventory Planning Models with Demand Shaping

Author : Joseph Geunes

Published in: Demand Flexibility in Supply Chain Planning

Publisher: Springer New York

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Abstract

This chapter considers the state of prior literature on operations models that account for demand flexibility. In particular, we focus on generalizations of the models discussed in Chap. 1 that treat demands as decision variables. These generalizations typically involve pricing models, and they provide a foundation for the models we will study in subsequent chapters.

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previous chapter Scope of Problem Coverage and Introduction
next chapter EOQ-Type Models with Demand Selection
Footnotes
1
One can verify that the second derivative of Π(p) with respect to p is strictly increasing in p; thus the profit function Π(p) is either convex in p for all p≥0, in which case an optimal extreme point solution exists (i.e., either p ∗=0 or p ∗=β/α), or Π(p) is concave on some interval \([0,\tilde{p}]\) and convex for \(p\geq\tilde{p}\). In the latter case, either an extreme solution or the stationary-point solution (2.3) is optimal (assuming such a stationary point exists).
 
2
We define an interval of uncertainty as an interval which is known to contain the optimal price, although the precise value of the optimal price remains unknown.
 
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Metadata
Title
Production and Inventory Planning Models with Demand Shaping
Author
Joseph Geunes
Copyright Year
2012
Publisher
Springer New York
Book
Demand Flexibility in Supply Chain Planning

Print ISBN: 978-1-4419-9346-5

Electronic ISBN: 978-1-4419-9347-2

Copyright Year: 2012

DOI
https://doi.org/10.1007/978-1-4419-9347-2_2