Coordinating Pricing & Production Planning for a Set of Seasonal Products with Elastic Demand
MA02.1
Coordinating Pricing & Production Planning for a Set of Seasonal Products with Elastic Demand Stephen M. Gilbert --- Case Western Research U, Weatherhead Sch. of Mgmt., 10900 Euclid Ave., Cleveland, OH 44106-7235,
We examine a situation in which a set of price elastic products with different seasonalities are produced on the same equipment. Assuming that production is planned to minimize the total cost of production and inventory, we examine methods for allocating inventory costs and pricing the products in order to maximize total profits.
