2,115
Views
1
CrossRef citations to date
0
Altmetric
Research Articles

Integrated optimisation of pricing, manufacturing, and procurement decisions of a make-to-stock system operating in a fluctuating environment

ORCID Icon & ORCID Icon
Pages 8423-8450 | Received 28 Feb 2022, Accepted 15 Nov 2022, Published online: 05 Dec 2022

References

  • Allon, G., and A. Zeevi. 2011. “A Note on the Relationship Among Capacity, Pricing, and Inventory in a Make-to-Stock System.” Production and Operations Management 20 (1): 143–151.
  • Altman, E., B. Gaujal, and A. Hordijk. 2000. “Multimodularity, Convexity, and Optimization Properties.” Mathematics of Operations Research 25 (2): 324–347.
  • Ardolino, M., A. Bacchetti, A. Dolgui, G. Franchini, D. Ivanov, and A. Nair. 2022. “The Impacts of Digital Technologies on Coping with the COVID-19 Pandemic in the Manufacturing Industry: A Systematic Literature Review.” International Journal of Production Research 00: 1–24.
  • Arifoğlu, K., and S. Özekici. 2010. “Optimal Policies for Inventory Systems with Finite Capacity and Partially Observed Markov-Modulated Demand and Supply Processes.” European Journal of Operational Research 204 (3): 421–438.
  • Arnold, J., S. Minner, and B. Eidam. 2009. “Raw Material Procurement with Fluctuating Prices.” International Journal of Production Economics 121 (2): 353–364.
  • Bailey, J. 2007. “Southwest Airlines Gains Advantage by Hedging on Long-Term Oil Contracts.” The New York Times, November 26, 2022. https://www.nytimes.com/2007/11/28/business/worldbusiness/28iht-hedge.4.8517580.html.
  • Benjaafar, S., M. ElHafsi, C.-Y. Lee, and W. Zhou. 2011. “Optimal Control of An Assembly System with Multiple Stages and Multiple Demand Classes.” Operations Research 59 (2): 522–529.
  • Berling, P., and V. Martınez-de Albéniz. 2011. “Optimal Inventory Policies When Purchase Price and Demand are Stochastic.” Operations Research 59 (1): 109–124.
  • Berling, P., and Z. Xie. 2014. “Approximation Algorithms for Optimal Purchase/Inventory Policy When Purchase Price and Demand are Stochastic.” OR Spectrum 36: 1077–1095.
  • Biller, S., A. Muriel, and Y. Zhang. 2006. “Impact of Price Postponement on Capacity and Flexibility Investment Decisions.” Production and Operations Management 15 (2): 198–214.
  • Carr, S., and I. Duenyas. 2000. “Optimal Admission Control and Sequencing in a Make-to-Stock/Make-to-Order Production System.” Operations Research 48 (5): 709–720.
  • Chen, L., Y. Feng, and J. Ou. 2006. “Joint Management of Finished Goods Inventory and Demand Process for a Make-to-Stock Product: A Computational Approach.” IEEE Transactions on Automatic Control 51 (2): 258–273.
  • Chen, L., Y. Feng, and J. Ou. 2009. “Coordinating Batch Production and Pricing of a Make-to-Stock Product.” IEEE Transactions on Automatic Control 54 (7): 1674–1680.
  • Chen, X., A. H. Tai, and Y. Yang. 2014. “Optimal Production and Pricing Policies in a Combined Make-to-Order/Make-to-Stock System.” International Journal of Production Research 52 (23): 7027–7045.
  • Corominas, A. 2022. “A Model for Designing a Procurement-Inventory System As a Defence Against a Recurring Epidemic.” International Journal of Production Research 60 (11): 3305–3318.
  • Dai, W., Z. Yang, Y. Feng, and M. Zheng. 2020. “Real-Time Procurement Policy with Yield and Price Uncertainty.” International Journal of Production Research 58 (3): 758–782.
  • Diamant, A., J. Milner, and F. Quereshy. 2018. “Dynamic Patient Scheduling for Multi-Appointment Health Care Programs.” Production and Operations Management 27 (1): 58–79.
  • ElHafsi, M. 2009. “Optimal Integrated Production and Inventory Control of An Assemble-to-Order System with Multiple Non-unitary Demand Classes.” European Journal of Operational Research 194 (1): 127–142.
  • ElHafsi, M., H. Camus, and E. Craye. 2008. “Optimal Control of a Nested-Multiple-Product Assemble-to-Order System.” International Journal of Production Research 46 (19): 5367–5392.
  • Elhafsi, M., and E. Hamouda. 2018. “Managing An Integrated Production and Inventory System Selling to a Dual Market: Long-Term and Walk-In.” European Journal of Operational Research 268 (1): 215–230.
  • Fan, L., T. L. Friesz, T. Yao, and X. Chen. 2013. “Strategic Pricing and Production Planning Using a Stackelberg Differential Game with Unknown Demand Parameters.” IEEE Transactions on Engineering Management 60 (3): 581–591.
  • Federgruen, A., and A. Heching. 1999. “Combined Pricing and Inventory Control Under Uncertainty.” Operations Research 47 (3): 454–475.
  • Gallego, G., and G. Van Ryzin. 1994. “Optimal Dynamic Pricing of Inventories with Stochastic Demand Over Finite Horizons.” Management Science 40 (8): 999–1020.
  • Gavirneni, S. 2004. “Periodic Review Inventory Control with Fluctuating Purchasing Costs.” Operations Research Letters 32 (4): 374–379.
  • Gayon, J.-P., and Y. Dallery. 2007. “Dynamic Vs Static Pricing in a Make-to-Stock Queue with Partially Controlled Production.” OR Spectrum 29 (2): 193–205.
  • Gayon, J.-P., I. Talay-Değirmenci, F. Karaesmen, and E. L. Örmeci. 2009. “Optimal Pricing and Production Policies of a Make-to-Stock System with Fluctuating Demand.” Probability in the Engineering and Informational Sciences 23 (2): 205–230.
  • Haksöz, Ç., and S. Seshadri. 2007. “Supply Chain Operations in the Presence of a Spot Market: A Review with Discussion.” Journal of the Operational Research Society 58: 1412–1429.
  • He, B., H. Huang, and K. Yuan. 2016. “Managing Supply Disruption Through Procurement Strategy and Price Competition.” International Journal of Production Research 54 (7): 1980–1999.
  • Hintsches, A., T. S. Spengler, T. Volling, K. Wittek, and G. Priegnitz. 2010. “Revenue Management in Make-to-Order Manufacturing: Case Study of Capacity Control At ThyssenKrupp VDM.” Business Research 3 (2): 173–190.
  • Hosseini, B., and B. Tan. 2019. “Modelling and Analysis of a Cooperative Production Network.” International Journal of Production Research 57 (21): 6665–6686.
  • Kalymon, B. A. 1971. “Stochastic Prices in a Single-Item Inventory Purchasing Model.” Operations Research 19 (6): 1434–1458.
  • Karabağ, O., and B. Tan. 2018. “Analysis of a Group Purchasing Organization Under Demand and Price Uncertainty.” Flexible Services and Manufacturing Journal 30 (4): 844–883.
  • Karabağ, O., and B. Tan. 2019. “Purchasing, Production, and Sales Strategies for a Production System with Limited Capacity, Fluctuating Sales and Purchasing Prices.” IISE Transactions 51 (9): 921–942.
  • Koole, G. 1998. “Structural Results for the Control of Queueing Systems Using Event-Based Dynamic Programming.” Queueing Systems 30 (3/4): 323–339.
  • Koole, G. 2004. “Convexity in Tandem Queues.” Probability in the Engineering and Informational Sciences 18 (1): 13–31.
  • Kunnumkal, S., and H. Topaloglu. 2010. “A New Dynamic Programming Decomposition Method for the Network Revenue Management Problem with Customer Choice Behavior.” Production and Operations Management 19 (5): 575–590.
  • Li, L. 1988. “A Stochastic Theory of the Firm.” Mathematics of Operations Research 13 (3): 447–466.
  • Li, S., Y. He, and S. Minner. 2021. “Dynamic Compensation and Contingent Sourcing Strategies for Supply Disruption.” International Journal of Production Research 59 (5): 1511–1533.
  • Lippman, S. A. 1975. “Applying a New Device in the Optimization of Exponential Queuing Systems.” Operations Research 23 (4): 687–710.
  • Liu, Y., and J. Yang. 2015. “Joint Pricing-Procurement Control Under Fluctuating Raw Material Costs.” International Journal of Production Economics 168: 91–104.
  • Marquinez, J. T., A. Sauré, A. Cataldo, and J.-C. Ferrer. 2021. “Identifying Proactive ICU Patient Admission, Transfer and Diversion Policies in a Public–Private Hospital Network.” European Journal of Operational Research 295 (1): 306–320.
  • Millhiser, W. P., and A. N. Burnetas. 2013. “Optimal Admission Control in Series Production Systems with Blocking.” IIE Transactions 45 (10): 1035–1047.
  • Nadar, E., M. Akan, and A. Scheller-Wolf. 2014. “Optimal Structural Results for Assemble-to-Order Generalized M-Systems.” Operations Research 62 (3): 571–579.
  • Nagali, V., J. Hwang, D. Sanghera, M. Gaskins, M. Pridgen, T. Thurston, P. Mackenroth, et al. 2008. “Procurement Risk Management (PRM) At Hewlett–Packard Company.” INFORMS Journal on Applied Analytics 38 (1): 51–60.
  • Öner-Közen, M., and S. Minner. 2018. “Dynamic Pricing, Leadtime Quotation and Due Date Based Priority Dispatching.” International Journal of Production Research 56 (15): 5118–5130.
  • Özekici, S., and M. Parlar. 1999. “Inventory Models with Unreliable Suppliers in a Random Environment.” Annals of Operations Research 91: 123–136.
  • Puterman, M. L. 2014. Markov Decision Processes: Discrete Stochastic Dynamic Programming. New Jersey: John Wiley & Sons.
  • Rezaei, J., N. Pourmohammadzia, C. Dimitropoulos, L. Tavasszy, and M. Duinkerken. 2020. “Co-procurement: Making the Most of Collaborative Procurement.” International Journal of Production Research 58 (15): 4529–4540.
  • Saputro, T. E., G. Figueira, and B. Almada-Lobo. 2021. “Integrating Supplier Selection with Inventory Management Under Supply Disruptions.” International Journal of Production Research 59 (11): 3304–3322.
  • Serfozo, R. F. 1979. “An Equivalence Between Continuous and Discrete Time Markov Decision Processes.” Operations Research 27 (3): 616–620.
  • Shi, X., H. Shen, T. Wu, and T. Cheng. 2014. “Production Planning and Pricing Policy in a Make-to-Stock System with Uncertain Demand Subject to Machine Breakdowns.” European Journal of Operational Research 238 (1): 122–129.
  • Spengler, T., S. Rehkopf, and T. Volling. 2007. “Revenue Management in Make-to-Order Manufacturing—An Application to the Iron and Steel Industry.” OR Spectrum 29 (1): 157–171.
  • Veatch, M. H., and L. M. Wein. 1994. “Optimal Control of a Two-Station Tandem Production/Inventory System.” Operations Research 42 (2): 337–350.
  • Volling, T., D. Eren Akyol, K. Wittek, and T. S. Spengler. 2012. “A Two-Stage Bid-Price Control for Make-to-Order Revenue Management.” Computers & Operations Research 39 (5): 1021–1032.
  • Wang, H., J. Tao, T. Peng, A. Brintrup, E. E. Kosasih, Y. Lu, R. Tang, and L. Hu. 2022. “Dynamic Inventory Replenishment Strategy for Aerospace Manufacturing Supply Chain: Combining Reinforcement Learning and Multi-Agent Simulation.” International Journal of Production Research 00: 1–20.
  • Xu, C., T. Fan, Q. Zheng, and Y. Song. 2021. “Contract Selection for Fresh Produce Suppliers Cooperating with a Platform Under a Markdown-Pricing Policy.” International Journal of Production Research 00: 1–25.
  • Xu, J., A. Serrano, and B. Lin. 2017. “Optimal Production and Rationing Policy of Two-Stage Tandem Production System.” International Journal of Production Economics 185: 100–112.
  • Xu, Y., and X. Chao. 2009. “Dynamic Pricing and Inventory Control for a Production System with Average Profit Criterion.” Probability in the Engineering and Informational Sciences 23 (3): 489–513.
  • Yang, J., and Y. Xia. 2009. “Acquisition Management Under Fluctuating Raw Material Prices.” Production and Operations Management 18 (2): 212–225.
  • Zhang, J., F. T. Chan, and X. Xu. 2022. “Data-Driven Analysis on Optimal Purchasing Decisions in Combined Procurement.” International Journal of Production Research 00: 1–14.