A multi-phase algorithm for a joint lot-sizing and pricing problem with stochastic demands

作者：Li, Hongyan^*; Thorstenson, Anders

来源：International Journal of Production Research, 2014, 52(8): 2345-2362.

DOI：10.1080/00207543.2013.864053

• capacitated lot sizing
• dynamic programming
• stochastic model
• pricing
• decomposition

Stochastic lot-sizing problems have been addressed quite extensively, but relatively few studies also consider marketing factors, such as pricing. In this paper, we address a joint stochastic lot-sizing and pricing problem with capacity constraints and backlogging for a firm that produces a single item over a finite multi-period planning horizon. Thece-dependent demands. The stochastic demand is captured by the scenario analysis approach, and this leads to a multiple-stage stochastic programming problem. Given the complexity of the stochastic programming problem, it is hard to determine optimal prices and lot sizes simultaneously. Therefore, we decompose the joint lot-sizing and pricing problem with stochastic demands and capacity constraints into a multi-phase decision process. In each phase, we solve the associated sub-problem to optimality. The decomposed decision process corresponds to a practically viable approach to decision-making. In addition to incorporating market uncertainty and pricing decisions in the traditional production and inventory planning process, our approach also accommodates the complexity of time-varying cost and capacity constraints. Finally, our numerical results show that the multi-phase heuristic algorithm solves the example problems effectively.

• 出版日期2014-4-18
• 单位东北大学