TY - JOUR ID - 39088 TI - Optimal production and marketing planning with geometric programming approach JO - Journal of Industrial and Systems Engineering JA - JISE LA - en SN - 1735-8272 AU - Moosavi Tabatabaei, Seyed Reza AU - Sadjadi, Seyed Jafar AU - Makui, Ahmad AD - Department of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran, Center of Excellence in Optimization and Manufacturing AD - School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran Y1 - 2017 PY - 2017 VL - 10 IS - special issue on production and inventory SP - 18 EP - 29 KW - Geometric programming KW - Nonlinear Model KW - Production and Operations Management KW - Optimal pricing KW - Marketing planning DO - N2 - One of the primary assumptions in most optimal pricing methods is that the production cost is a non-increasing function of lot-size. This assumption does not hold for many real-world applications since the cost of unit production may have non-increasing trend up to a certain level and then it starts to increase for many reasons such as an increase in wages, depreciation, etc. Moreover, the production cost will eventually have a declining trend. This trend curve can be demonstrated in terms of cubic function and the resulted optimal pricing model can be modeled in Geometric Programming (GP). In this paper, we present a new optimal pricing model where the cost of production has different trends depending on the production size. The resulted problem is formulated as a parametric GP with five degrees of difficulty and it is solved using the recent advances of optimization techniques. The paper is supported with various numerical examples and the results are analyzed under different scenarios. UR - https://www.jise.ir/article_39088.html L1 - https://www.jise.ir/article_39088_77aa9e4e52e0c0596a7c50cc51b7516f.pdf ER -