Optimal Pricing and Production Master Planning in a Multiperiod Horizon Considering Capacity and Inventory Constraints

Table 1

Inventory models with price and production decisions.

Author(s)	Year	Inventory model	Capacity constrain	Inventory constrain	Multiperiod horizon
Whitin [23]	1955	It was linked the price policy and inventory theory and determined the combined policy that yield the maximum profit	No	No	No
Thomas [24]	1970	Determines simultaneously the price and production decision with a known deterministic demand function	No	No	Yes
Kunreuther and Richard [25]	1971	Determines the price and ordering decision considering a stationary demand curve	No	No	No
Cheng [4]	1990	An economic order quantity (EOQ) model that integrates the product pricing and order sizing decisions with storage space and inventory investment limitations	No	Yes	No
Harris and Pinder [26]	1995	Determines optimal price and capacity decision for a single-period	No	No	No
Kim and Lee [27]	1998	Determines the optimal price, lot size and the capacity decision for a firm with constant price-dependent demands	Yes	No	No
Gilbert [28]	1999	Determines the optimal price and production schedule for a product with seasonal demand	No	No	Yes
Bhattacharjee and Ramesh [29]	2000	Determines the optimal price and lot size for a product with fixed life perish-ability for a certain number of periods	No	No	Yes
Gilbert [30]	2000	Determines the optimal price and production schedule for a product with seasonal price dependent demand	Yes	No	Yes
Zhao and Wang [31]	2002	Coordination of price and production schedules in a decentralized supply chain	No	No	Yes
Chen and Simchi-Levi [32]	2003	Determines the price and productions decisions	No	No	Yes
Deng and Yano [33]	2006	Setting prices and choosing production quantities for a single product over a finite horizon for a capacity-constrained manufacturer facing price-sensitive demands	Yes	No	Yes
Chan et al. [17]	2006	Study delayed production and delayed pricing strategies for a multiple period horizon under a general, nonstationary stochastic demand function with a discrete menu of prices	Yes	No	Yes
This paper	This year	Determines the optimal pricing and production master planning in a multi period horizon considering capacity and inventory constraints	Yes	Yes	Yes