Abstract

This paper addresses a multi-product integrated lot-sizing and pricing problem for an entity which produces and sells different products under a finite production capacity constraint. The demands for each product is assumed to be linear and takes into account the complementarity or substitution characteristics of the products. The objective is to find prices and the production planning (productions quantities, inventory level, setups configuration) for each product during several time periods to maximize the profit. The problem is formulated as a mixed integer nonlinear model with the consideration of different constraints related to production capacity and setup costs. Some new theoretical properties regarding the convexity of the problem and its relaxation are established. Finally, numerical examples are presented to illustrate the obtained results.

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