October  2009, 5(4): 767-781. doi: 10.3934/jimo.2009.5.767

Two-echelon requirements planning with pricing decisions


Department of Industrial and Systems Engineering, University of Florida, P.O. Box 116595, Gainesville, Florida 32611-6595, United States


Department of Industrial and Operations Engineering, The University of Michigan, 1205 Beal Avenue, Ann Arbor, Michigan 48109-2117, United States

Received  May 2008 Revised  May 2009 Published  August 2009

We consider a two-level uncapacitated lot-sizing problem where production, inventory carrying, transportation, and pricing decisions are integrated to maximize total profits. We show how this problem, under many different revenue functions and production, inventory holding, and transportation cost structures can be solved in polynomial time. As a byproduct, we develop polynomial-time algorithms for generalizations of single-level lot-sizing problems with pricing as well.
Citation: Mehmet Önal, H. Edwin Romeijn. Two-echelon requirements planning with pricing decisions. Journal of Industrial & Management Optimization, 2009, 5 (4) : 767-781. doi: 10.3934/jimo.2009.5.767

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