Advanced Search
MyIDEAS: Login to save this article or follow this journal

A Modeling Framework for Coordinating Promotion and Production Decisions within a Firm

Contents:

Author Info

  • Aram G. Sogomonian

    (Anderson Graduate School of Management, University of California, Los Angeles, California 90024)

  • Christopher S. Tang

    (Anderson Graduate School of Management, University of California, Los Angeles, California 90024)

Registered author(s):

    Abstract

    This paper presents a modeling framework for evaluating the benefits of coordinating promotion and production decisions over a finite planning horizon within a firm. These decisions include the timing and level of promotion, and the level of production. The modeling framework consists of the development of a baseline model and an integrated model. In the baseline (integrated) model, the firm would consider those promotion and production decisions separately (jointly). For each of the models, we formulate the problem that determines the optimal promotion and production decisions so that the total net profit is maximized as a mixed integer program. By exploiting the structure of the problem, we show that each problem can be reformulated as a "longest path" problem over a network. Hence, each problem can be solved efficiently. This solution approach enables us to evaluate the benefits of coordinating promotion and production decisions by comparing the total net profit generated by the baseline model to that of the integrated model.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://dx.doi.org/10.1287/mnsc.39.2.191
    Download Restriction: no

    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 39 (1993)
    Issue (Month): 2 (February)
    Pages: 191-203

    as in new window
    Handle: RePEc:inm:ormnsc:v:39:y:1993:i:2:p:191-203

    Contact details of provider:
    Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Email:
    Web page: http://www.informs.org/
    More information through EDIRC

    Related research

    Keywords: marketing/manufacturing interface; promotion; production; networks;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Fleischmann, M. & Hall, J.M. & Pyke, D.F., 2005. "A Dynamic Pricing Model for Coordinated Sales and Operations," ERIM Report Series Research in Management ERS-2005-074-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Zhang, Ju-Liang & Chen, Jian & Lee, Chung-Yee, 2008. "Joint optimization on pricing, promotion and inventory control with stochastic demand," International Journal of Production Economics, Elsevier, vol. 116(2), pages 190-198, December.
    3. Tang, Christopher S., 2010. "A review of marketing-operations interface models: From co-existence to coordination and collaboration," International Journal of Production Economics, Elsevier, vol. 125(1), pages 22-40, May.
    4. Ghose, Sanjoy & Liu, John J. & Bhatnagar, Amit & Kurata, Hisashi, 2005. "Modeling the role of retail price formats, and retailer competition types on production schedule strategy," European Journal of Operational Research, Elsevier, vol. 164(1), pages 173-184, July.
    5. Erickson, Gary M., 2011. "A differential game model of the marketing-operations interface," European Journal of Operational Research, Elsevier, vol. 211(2), pages 394-402, June.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:39:y:1993:i:2:p:191-203. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.