title: Optimal pricing and marketing planning for deteriorating items.
abstract: Optimal pricing and marketing planning plays an essential role in production decisions on deteriorating items. This paper presents a mathematical model for a three-level supply chain, which includes one producer, one distributor and one retailer. The proposed study considers the production of a deteriorating item where demand is influenced by price, marketing expenditure, quality of product and after-sales service expenditures. The proposed model is formulated as a geometric programming with 5 degrees of difficulty and the problem is solved using the recent advances in optimization techniques. The study is supported by several numerical examples and sensitivity analysis is performed to analyze the effects of the changes in different parameters on the optimal solution. The preliminary results indicate that with the change in parameters influencing on demand, inventory holding, inventory deteriorating and set-up costs change and also significantly affect total revenue.
authors.affiliation: Department of Industrial Engineering, Center of excellence in optimization and manufacturing, Iran University of Science and Technology, Tehran, Iran.
authors.forename: Seyed Reza
authors.initials: SR
authors.lastname: Moosavi Tabatabaei
authors.affiliation: Department of Industrial Engineering, Center of excellence in optimization and manufacturing, Iran University of Science and Technology, Tehran, Iran.
authors.forename: Seyed Jafar
authors.initials: SJ
authors.lastname: Sadjadi
authors.affiliation: Department of Industrial Engineering, Center of excellence in optimization and manufacturing, Iran University of Science and Technology, Tehran, Iran.
authors.forename: Ahmad
authors.initials: A
authors.lastname: Makui
mesh_terms: D040541:Marketing; D015233:Models, Statistical