Template-Type: ReDIF-Paper 1.0
Author-Name: van den Heuvel, W.
Author-Name-Last: van den Heuvel
Author-Name-First: Wilco
Author-Person: pva62
Author-Name: Kundakcioglu, O.E.
Author-Name-Last: Kundakcioglu
Author-Name-First: Erhun
Author-Name: Geunes, J.
Author-Name-Last: Geunes
Author-Name-First: Joseph
Author-Name: Romeijn, H.E.
Author-Name-Last: Romeijn
Author-Name-First: Edwin
Author-Name: Sharkey, T.C.
Author-Name-Last: Sharkey
Author-Name-First: Thomas
Author-Name: Wagelmans, A.P.M.
Author-Name-Last: Wagelmans
Author-Name-First: Albert
Title: Integrated market selection and production planning: complexity and solution approaches
Abstract: Emphasis on effective demand management is becoming increasingly recognized as an important factor in operations performance. Operations models that account for supply costs and constraints as well as a supplier's ability to in°uence demand characteristics can lead to an improved match between supply and demand. This paper presents a new class of optimization models that allow a supplier to select, from a set of potential markets, those markets that provide maximum profit when production/procurement economies of scale exist in the supply process. The resulting optimization problem we study possesses an interesting structure and we show that although the general problem is NP-complete, a number of relevant and practical special cases can be solved in polynomial time. We also provide a computationally very effcient and intuitively attractive heuristic solution procedure that performs extremely well on a large number of test instances.
Creation-Date: 2007-10-01
File-URL: https://repub.eur.nl/pub/10776/EI%202007-45.pdf
File-Format: application/pdf
Series: RePEc:ems:eureir
Number: EI 2007-45
Handle: RePEc:ems:eureir:10776