An integrated product pricing and batch sizing model with stochastic demand

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)


In this paper we present an integrated decision model which combines the decisions of setting product prices and determining manufacturing batch sizes with an ultimate objective of maximizing a ultility function, defined as the trade-off between the expected return and the risk. The stochastic nature of the demand curves as well as the constraints on space and inventories and the risk of making a loss are all taken into consideration. After the theoretical treatment, a numerical example is given to demonstrate how to formulate the problem and show the necessary procedures to derive the optimal solution.
Original languageEnglish
Pages (from-to)27-31
Number of pages5
JournalEngineering Costs and Production Economics
Issue number1-2
Publication statusPublished - 1 Jan 1984
Externally publishedYes

ASJC Scopus subject areas

  • Engineering(all)

Cite this