Nafisah, Laila and Puryani, Puryani and Wibowo, A. A. and ASTANTI, Yuli Dwi (2022) Pricing Policy and Optimal Production Quantity with Demand Depends on Price. In: 1st International Conference on Engineering Optimization and Management in Industrial Applications "Advancement of Optimization, Engineering Technology, and Management for Sustainable Environment", 29 Oct 2022, Yogyakarta.
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Abstract
Consumers have a tendency to buy goods with good quality at low prices, while the price for the company is a determining factor for the resulting profit. Determining the right price is an important thing to consider, because if the price is set too high then the risk is that only a few products will be sold, but if the price is set too low it will reduce the profits. On the other hand, with the various types of items produced, there is often a shortage of stock for certain types and excess stock for other types. Therefore, to produce products with competitive prices and profit in accordance with the wishes of the company, the company must carry out production planning properly so that production operations can run effectively and efficiently. In this study, we develop a pricing policy model and the optimal combination of production quantities for multi-item products with demand is a function of prices. The aim is to determine the right pricing model based on stochastic consumer valuations and simultaneously determine the optimal combination model of the number of products that must be produced for each item in order to maximize company profits. While the model solution is done by using integer linear programming approach.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Uncontrolled Keywords: | Pricing policy, product combination, stochastic demand, integer linear programming |
| Subjects: | T Technology > T Technology (General) |
| Depositing User: | ST, M.Sc Astrid Wahyu Adventri Wibowo |
| Date Deposited: | 30 Jan 2023 03:14 |
| Last Modified: | 30 Jan 2023 03:15 |
| URI: | http://eprints.upnyk.ac.id/id/eprint/32526 |
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