Coordinated Dynamic Control of Marketing and Production

作者：Yang Jian^*; Zhang Xiaolong

来源：Naval Research Logistics, 2009, 56(4): 348-365.

DOI：10.1002/nav.20348

• joint control
• markov decision process
• optimal policy
• heuristics

We study the dynamic profit maximzation problem for a firm exercising control on both marketing and production. The firm';s marketing effort impacts the current-period demand, which in turn affects future demand in a dissipating fashion. Under linear-cost and zero-leadtime assumptions, we show that the firm should follow base-point rules for both marketing and production, whereas trends of the base points reflect a certain complementarity between marketing and production. We obtain comparable results when marketing costs are convex. Our computational study identifies conditions under which simple fixed-marketing-effort and fixed-marketing-target heuristics would perform well.

• 出版日期2009-6