Chapter 18 Marketing-production joint decision-making

Publisher Summary This chapter describes some tangible benefits that emerge from coexistence and outlines some techniques in management science that have been developed to address this issue. At this point, it seems worthwhile to consider some additional perspectives in order to identify existing gaps that may offer further research opportunities. Few of the models incorporate competition, undoubtedly because the fact that the existence of both production and marketing decisions creates models which are already considerably complex. Despite the daunting nature of competitive formulations, these would be well worth investigating. Another dimension which should be looked into is the case of multiple products. Such models may be quite difficult to analyze, however, with the existing tools.

[1]  Graham K. Rand,et al.  Decision Systems for Inventory Management and Production Planning , 1979 .

[2]  Anthony V. Fiacco,et al.  Nonlinear programming;: Sequential unconstrained minimization techniques , 1968 .

[3]  John R. Hauser,et al.  Design and marketing of new products , 1980 .

[4]  J. George Shanthikumar,et al.  Optimal group maintenance policies with continuous and periodic inspections , 1987 .

[5]  E. Mills.  Uncertainty and Price Theory , 1959 .

[6]  B. Pashigian,et al.  Demand Uncertainty and Sales: A Study of Fashion and Markdown Pricing , 1988 .

[7]  Robert J. Graham.  Problem and Opportunity Identification in Management Science , 1976 .

[8]  Paul E. Green,et al.  Models and Heuristics for Product Line Selection , 1985 .

[9]  Andrew B. Abel,et al.  Inventories, Stock-Outs, and Production Smoothing , 1985 .

[10]  H. Hotelling.  Stability in Competition , 1929 .

[11]  Brian T. Ratchford.  Commentary on Marketing Applications of the Economics of Product Variety , 1990 .

[12]  E. J. Anderson,et al.  Deterministic Lotsizing Models for Production Planning , 1991 .

[13]  J. Eliashberg,et al.  Competitive strategies for two firms with asymmetric production cost structures , 1991 .

[14]  Uday S. Karmarkar,et al.  Lot Sizes, Lead Times and In-Process Inventories , 1987 .

[15]  V. Rao.  Pricing Research in Marketing: The State of the Art , 1984 .

[16]  U. P. Welam.  Note---On a Simultaneous Decision Model for Marketing, Production and Finance , 1977 .

[17]  L. Schrage,et al.  Joint Pricing and Inventory Decisions for Constant Priced Items , 1973 .

[18]  Suresh P. Sethi,et al.  Decision and Forecast Horizons in a Stochastic Environment: A Survey , 1987 .

[19]  Morris A. Cohen.  Joint pricing and ordering policy for exponentially decaying inventory with known demand , 1977 .

[20]  R. Hartl,et al.  Optimal pricing and production in an inventory model , 1985 .

[21]  Ahmad K. Elshennawy,et al.  Defining service quality is difficult for service and manufacturing firms , 1989 .

[22]  James R. Freeland,et al.  Coordination Strategies for Production and Marketing in a Functionally Decentralized Firm , 1980 .

[23]  David B. Montgomery,et al.  To Pioneer or Follow?: Strategy of Entry Order , 1991 .

[24]  Gunnar T. Thowsen.  A dynamic, nonstationary inventory problem for a price/quantity setting firm , 1975 .

[25]  Arnoldo C. Hax,et al.  Production and inventory management , 1983 .

[26]  Harvey M. Wagner.  A POSTSCRIPT TO DYNAMIC PROBLEMS IN THE THEORY OF THE FIRM , 1960 .

[27]  Julian Keilson,et al.  Parts and service demand distribution generated by primary production growth , 1984 .

[28]  Prakash L. Abad,et al.  A hierarchical optimal control model for co-ordination of functional decisions in a firm , 1987 .

[29]  A. S. Manne.  A LINEAR PROGRAMMING MODEL OF THE U. S. PETROLEUM REFINING INDUSTRY , 1958 .

[30]  Kent B. Monroe,et al.  Models for Pricing Decisions , 1978 .

[31]  Steffen Jørgensen,et al.  Optimal Dynamic Pricing in an Oligopolistic Market: a Survey , 1986 .

[32]  Thomas J. Crowe,et al.  Deciding manufacturing priorities: Flexibility, cost, quality and service , 1991 .

[33]  Gerald L. Thompson,et al.  Oligopoly Models for Optimal Advertising When Production Costs Obey a Learning Curve , 1983 .

[34]  T. M. Whitin.  Inventory Control and Price Theory , 1955 .

[35]  Rakesh K. Sarin,et al.  Simultaneous Product-Mix Planning, Lot Sizing and Scheduling at Bottleneck Facilities , 1991, Oper. Res..

[36]  Joseph Thomas.  Price-Production Decisions with Deterministic Demand , 1970 .

[37]  S. Whang,et al.  On manufacturing/marketing incentives , 1991 .

[38]  Dov Pekelman,et al.  Simultaneous Price-Production Decisions , 1974, Oper. Res..

[39]  W. Damon,et al.  A Simultaneous Decision Model for Production, Marketing and Finance , 1972 .

[40]  Christopher S. Tang,et al.  A Modeling Framework for Coordinating Promotion and Production Decisions within a Firm , 1993 .

[41]  A. Federgruen,et al.  A Simple Forward Algorithm to Solve General Dynamic Lot Sizing Models with n Periods in 0n log n or 0n Time , 1991 .

[42]  J. A. Buzacott,et al.  Flexible manufacturing systems: a review of analytical models , 1986 .

[43]  L. Zurich,et al.  Operations Research in Production Planning, Scheduling, and Inventory Control , 1974 .

[44]  J. K. Lenstra,et al.  Deterministic Production Planning: Algorithms and Complexity , 1980 .

[45]  J. Eliashberg,et al.  Marketing-production decisions in an industrial channel of distribution , 1987 .

[46]  S. Wheelwright,et al.  Restoring Our Competitive Edge: Competing Through Manufacturing , 1984 .

[47]  A. Blanton Godfrey,et al.  Report: The history and evolution of quality in AT&T , 1986, AT&T Technical Journal.

[48]  F. J. Gould,et al.  Extensions of the Planning Horizon Theorem in the Dynamic Lot Size Model , 1969 .

[49]  Michael W. Davis.  Fundamentals of Operations Management , 1991 .

[50]  K. Roscoe Davis.  The Process of Problem Finding: A Production-Marketing Example , 1977 .

[51]  J. M. Griffin.  The Process Analysis Alternative to Statistical Cost Functions: An Application to Petroleum Refining , 1972 .

[52]  Steven Nahmias,et al.  Perishable Inventory Theory: A Review , 1982, Oper. Res..

[53]  K. Lancaster.  The Economics of Product Variety: A Survey , 1990 .

[54]  Terry Williams,et al.  Operations Management: Production of Goods and Services , 1980 .

[55]  C. C. Holt,et al.  Planning Production, Inventories, and Work Force. , 1962 .

[56]  J. Richard,et al.  Optimal pricing and inventory decisions for non-seasonal items , 1971 .

[57]  E. Zabel.  Some Generalizations of an Inventory Planning Horizon Theorem , 1964 .

[58]  Imran S. Currim,et al.  An approach for determination of warranty length , 1992 .

[59]  U. P. Welam.  Synthesizing Short Run Production and Marketing Decisions , 1977 .

[60]  G. Dobson,et al.  Heuristics for pricing and positioning a product-line using conjoint and cost data , 1993 .

[61]  T. Smunt.  Incorporating learning curve analysis into medium-term capacity planning procedures: a simulation experiment , 1986 .

[62]  Abel P. Jeuland,et al.  Experience Curves and Dynamic Demand Models: Implications for Optimal Pricing Strategies , 1981 .

[63]  L. Joseph Thomas.  Technical Note - Price and Production Decisions with Random Demand , 1974, Oper. Res..

[64]  F. Hohn,et al.  Production Planning Over Time and the Nature of the Expectation and Planning Horizon , 1955 .

[65]  Charles H. Fine,et al.  Optimal investment in product-flexible manufacturing capacity , 1990 .

[66]  Evan L. Porteus.  Investing in Reduced Setups in the EOQ Model , 1985 .

[67]  H. M. Wagner,et al.  Dynamic problems in the theory of the firm , 1958 .

[68]  Paul R. Milgrom,et al.  The Economics of Modern Manufacturing: Technology, Strategy, and Organization , 1990 .

[69]  Suresh P. Sethi,et al.  Strong planning and forecast horizons for a model with simultaneous price and production decisions , 1984 .

[70]  K. B. Monroe.  Pricing: Making Profitable Decisions , 1990 .

[71]  Kwang-Fu Li.  Serial production lines with unreliable machines and limited repair , 1987 .

[72]  Xavier de Groote,et al.  Flexibility and marketing/manufacturing coordination , 1994 .

[73]  Dov Pekelman,et al.  Production Smoothing with Fluctuating Price , 1975 .

[74]  Jr. Arthur F. Veinott.  The Status of Mathematical Inventory Theory , 1966 .

[75]  S. Elmaghraby.  The Economic Lot Scheduling Problem (ELSP): Review and Extensions , 1978 .

[76]  K. Arrow,et al.  OPTIMAL ADVERTISING POLICY UNDER DYNAMIC CONDITIONS , 1962 .

[77]  Rakesh,et al.  Dynamic Pricing and Ordering Decisions by a Monopolist , 1992 .

[78]  William W. Damon,et al.  On a Simultaneous Decision Model for Marketing, Production and Finance: A Rejoinder , 1977 .

[79]  R. L. Price,et al.  The return map: tracking product teams. , 1991, Harvard business review.

[80]  S. Jørgensen.  Optimal production, purchasing and pricing: A differential game approach , 1986 .

[81]  J. Hauser,et al.  The House of Quality , 1988 .

[82]  W. Zangwill.  Minimum Concave Cost Flows in Certain Networks , 1968 .