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Integrated Decision Making in the Field of Pricing and Production Planning

Hosseini, Saeede | 2019

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 52025 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Akbari Gokar, Mohammad Reza
  7. Abstract:
  8. The integration of pricing and production planning decisions has attracted many researchers and industry professionals, as these decisions directly affect the highest and lowest levels of a company. In this thesis, an integrated production-price problem for two complementary products is studied. Regarding the negative correlation of the two products, different sales strategies, including unbundling, pure bundling and mixed bundling, are used and three distinct models are proposed for each one. In the models, real and important assumptions such as production capacity limitation, shared resources, and the cost of preparation are considered. The goal of solving these models is to determine the prices and optimal production amount of each product and bundle in different periods in order to maximize the manufacure's profit. Additionally, the best selling strategy should be determined in different circumstances. This is a mixed integer nonlinear programming, which is used to solve the problem with respect to the concave function of the objective function and the convex space. The results of testing the experimental data and analyzing the sensitivity of the parameters show that by increasing the production capacity to a certain amount, profit will increase, but after that the optimal values of variables and profit will be fixed. Also, increasing cross-price elasticity in lower and moderate amounts reduces prices and profits, but at higher values, with increasing it, profits and prices increase. In addition, the mixed sales strategy, with any capacity and cross-price elasticity, works better than the other two methods in terms of demand attraction and profitability
  9. Keywords:
  10. Integration ; Pricing ; Production Planning ; Packaging ; Complementarity Principle ; Integrated Decisions

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