Pricing and Production Decisions in Reusable Container Systems

Atamer B., Bayındır Z. P., Bakal İ. S.

24th European Conference on Operational Research, Lisbon, Portugal, 11 - 14 July 2010, pp.113

  • Publication Type: Conference Paper / Summary Text
  • City: Lisbon
  • Country: Portugal
  • Page Numbers: pp.113
  • Middle East Technical University Affiliated: Yes


 Pricing and Production Decisions in Reusable Container Systems Busra Atamer, Industrial Engineering, Middle East Technical University, ODTU Endustri Muhendisligi Bolumu, Oda No:326, Orta Dogu Teknik Universitesi Kampusu, 06531, Ankara, Turkey,, Ismail Serdar Bakal, Z. Pelin Bayindir In this study, we consider decision problems on reusable container systems. The return rate of containers depends on customer demand and deposit price; and the producer determines the return rate via modifying the latter.Production planning and pricing decisions are to be made simultaneously because the producer also has to decide on the quantity of brand new reusable containers to be purchased.In this environment, we maximize the manufacturer’s profit by utilizing constrained non-linear optimization techniques.We gain significant insights with our analytical and computational observations