2012-09-01
Integrated market selection and production planning: Complexity and solution approaches
Publication
Publication
Mathematical Programming , Volume 134 - Issue 2 p. 395- 424
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 influence demand characteristics can lead to an improved match between supply and demand. This paper presents a 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 efficient and intuitively attractive heuristic solution procedure that performs extremely well on a large number of test instances.
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doi.org/10.1007/s10107-011-0441-7, hdl.handle.net/1765/23233 | |
ERIM Top-Core Articles , Econometric Institute Reprint Series | |
Mathematical Programming | |
Organisation | Erasmus Research Institute of Management |
van den Heuvel, W., Kundakcioglu, E., Geunes, J., Romeijn, E., Sharkey, T., & Wagelmans, A. (2012). Integrated market selection and production planning: Complexity and solution approaches. Mathematical Programming, 134(2), 395–424. doi:10.1007/s10107-011-0441-7 |