 Dynamic replenishment, production, and pricing decisions, in the face of supply disruption and random price-sensitive demandStuart X. Zhu International Journal of Production Economics, 2013, vol. 146, issue 2, 612-619 Abstract: We study a joint decision problem for replenishment, production, pricing strategies in the face of both supply and demand uncertainties. The supply of the raw material suffers from a potential supply disruption while the demand for the finished goods is price-sensitive and random. We assume that the raw material is storable and unfilled demands are fully backordered. We characterize the optimal policies for raw-material replenishment, finished-goods production, and pricing. We find that the optimal replenishment policy is an order-up-to type for a given finished-goods stock level while it is a threshold type for a given raw-material stock level. For either a given finished-goods stock level or a given raw-material stock level, the optimal production policy is a threshold type and the optimal pricing policy is a modified list-price type, respectively. Keywords: Replenishment; Production; Pricing; Supply disruption; Random and price-sensitive demand (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:146:y:2013:i:2:p:612-619 DOI: 10.1016/j.ijpe.2013.08.009 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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