TY - GEN
T1 - A linkage of markdown pricing with aggregate production planning
AU - Zhu, Wenyun
AU - Chung, William
PY - 2008
Y1 - 2008
N2 - This paper is to study the significance of the cooperation between the markdown policy and the aggregate planning so as to simulate the cooperation between retailers and manufacturers. A fuzzy nonlinear programming model, named Aggregate Production Planning-Markdown Pricing Model (APP-MP), is established by integrating the markdown model into Aggregate Production Planning model. Due to the uncertainty of business information and environment, some cost elements are considered to be fuzzy number so that the objective function is fuzzy in nature. The fuzzy programming model is transformed into a crisp parametric model to be solved. The parametric APP-MP is able to help the retailer and the manufacturer flexibly make the pricing decisions, including the magnitude and time of markdown, and production decisions based on different satisfaction levels so that greater profits could be obtained. The example solution shows that the cooperation definitely increases the profits. ©2008 IEEE.
AB - This paper is to study the significance of the cooperation between the markdown policy and the aggregate planning so as to simulate the cooperation between retailers and manufacturers. A fuzzy nonlinear programming model, named Aggregate Production Planning-Markdown Pricing Model (APP-MP), is established by integrating the markdown model into Aggregate Production Planning model. Due to the uncertainty of business information and environment, some cost elements are considered to be fuzzy number so that the objective function is fuzzy in nature. The fuzzy programming model is transformed into a crisp parametric model to be solved. The parametric APP-MP is able to help the retailer and the manufacturer flexibly make the pricing decisions, including the magnitude and time of markdown, and production decisions based on different satisfaction levels so that greater profits could be obtained. The example solution shows that the cooperation definitely increases the profits. ©2008 IEEE.
KW - Aggregate production planning
KW - Cooperation
KW - Fuzzy programming
KW - Markdown pricing
UR - http://www.scopus.com/inward/record.url?scp=58049161967&partnerID=8YFLogxK
UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-58049161967&origin=recordpage
U2 - 10.1109/SOLI.2008.4682829
DO - 10.1109/SOLI.2008.4682829
M3 - RGC 32 - Refereed conference paper (with host publication)
SN - 9781424420131
VL - 2
SP - 1839
EP - 1844
BT - Proceedings of 2008 IEEE International Conference on Service Operations and Logistics, and Informatics, IEEE/SOLI 2008
T2 - 2008 IEEE International Conference on Service Operations and Logistics, and Informatics, IEEE/SOLI 2008
Y2 - 12 October 2008 through 15 October 2008
ER -