Abstract
This paper presents an integrated production, marketing and inventory model which determines the production lot size, marketing expenditure and product’s selling price. Our model is highly nonlinear and non-convex and cannot be solved directly. Therefore, Geometric Programming (GP) is used to locate the optimal solution of the proposed model. In our GP implementation, we use a transformed dual problem in order to reduce the model to an optimization of an unconstrained problem in a single variable and the resulting problem is solved using a simple line search. We analyze the solution in different cases in order to study the behaviour of the model and for each case, a numerical example is used to demonstrate the implementation of our analysis.
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Sadjadi, S.J., Oroujee, M. & Aryanezhad, M.B. Optimal Production and Marketing Planning. Comput Optim Applic 30, 195–203 (2005). https://doi.org/10.1007/s10589-005-4564-8
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DOI: https://doi.org/10.1007/s10589-005-4564-8