Dynamic optimisation of price, warranty length and production rate

International Journal of Systems Science

Volumn 40, Issue 4, 2009, Pages 411-420

  Lin, Pei Chun ^a   Wang, Jenhung ^b   Chin, Shiao Shan ^b  

^a NATIONAL CHENG KUNG UNIVERSITY   (Taiwan)

^b NATIONAL KAOHSIUNG UNIVERSITY OF APPLIED SCIENCES   (Taiwan)

Author keywords

Learning effect; Optimal control; Pricing; Warranty

Indexed keywords

ANALYTICAL PROCESS; ANALYTICAL SOLUTIONS; DEFECTIVE ITEMS; DEMAND FUNCTION; DISCRETISATION; DYNAMIC DECISION; LEARNING EFFECT; LIFE-TIME DISTRIBUTION; MODEL-DRIVEN; OPTIMAL CONTROL; OPTIMAL CONTROLS; OPTIMISATION; PRICING; PRODUCTION PROBLEMS; PRODUCTION RATES; REAL NUMBER; WARRANTY; WARRANTY COSTS;

ARTIFICIAL INTELLIGENCE; COST BENEFIT ANALYSIS; DECISION SUPPORT SYSTEMS; DECISION THEORY; DIGITAL COMPUTERS; FUNCTIONS; GRAPHICAL USER INTERFACES; NUMBER THEORY; OPTIMIZATION;

COSTS;

EID: 67651236539     PISSN: 00207721     EISSN: 14645319     Source Type: Journal    
DOI: 10.1080/00207720802556229     Document Type: Article

References (34)

1. Adida, E., and Perakis, G. (2006), 'A Robust Optimization Approach to Dynamic Pricing and Inventory Control with no Backorders,' Mathematical Programming, 107(1), 97-129.
2. Albers, S. (1997), 'CAPPLAN: A Decision-Support System for Planning the Pricing and Sales Effort Policy of a Salesforce,' Pricing Strategy and Practice, 5(1), 30-39.
3. Amit, R., and Ilan, Y. (1990), 'The Choice of Manufacturing Technology in the Presence of Dynamic Demand and Experience Effects,' IIE Transactions, 22(2), 100-111.
4. Aoki, M., and Yoshikawa, H. (2002), 'Demand Saturation-creation and Economic Growth,' Journal of Economic Behavior and Organization, 48(2), 127-154.
5. Cassaigne, N., and Singh, M.G. (2001), 'Intelligent Decision Support for the Pricing of Products and Services in Competitive Consumer Markets,' IEEE Transactions on Systems, Man and Cybernetics, Part C, 31(1), 96-106.
6. Chattopadhyay, G., and Rahman, A. (2008), 'Development of Lifetime Warranty Policies and Models for Estimating Costs,' Reliability Engineering and System Safety, 93(4), 522-529.
7. Chien, Y.-H., and Chen, J.-A. (2007), 'Optimal Age-Replacement Policy for Repairable Products Under Renewing Free-Replacement Warranty,' International Journal of Systems Science, 38(9), 759-769.
8. Clarke, F.H., Darrough, M.N., and Heineke, J.M. (1982), 'Optimal Pricing Policy in the Presence of Experience Effects,' The Journal of Business, 55(4), 517-530.
9. Dockner, E., and Jorgensen, S. (1988), 'Optimal Pricing Strategies for New Products in Dynamic Oligopolies,' Marketing Science, 7(4), 315-334.
10. Dolan, R.J., and Simon, H. (1996), Power Pricing: How Managing Price Transforms the Bottom Line, New York: Free Press.
11. Glickman, T.S., and Berger, P.D. (1976), 'Optimal Price and Protection Period Decisions for a Product under Warranty,' Management Science, 22(12), 1381-1390.
12. Huang, H.Z., Liu, Z.-J., and Murthy, D.N.P. (2007), 'Optimal Reliability, Warranty and Price for New Products,' IIE Transactions, 39(8), 819-827.
13. Ja, S.S., Kulkarni, V.G., Mitra, A., and Patankar, J.G. (2002), 'Warranty Reserves for Nonstationary Sales Processes,' Naval Research Logistics, 49(5), 499-513.
14. Jøgensen, S., Kort, P.M., and Zaccour, G. (1999), 'Production, Inventory, and Pricing Under Cost and Demand Learning Effects,' European Journal of Operational Research, 117(2), 382-395.
15. Kalish, S. (1983), 'Monopolist Pricing with Dynamic Demand and Production Cost,' Marketing Science, 2(2), 135-159.
16. Kim, B., and Park, S. (2008), 'Optimal Pricing, EOL (End of Life) Warranty, and Spare Parts Manufacturing Strategy Amid Product Transition,' European Journal of Operational Research, 188(3), 723-745.
17. Kim, J.Y. (2002), 'Product Compatibility as a Signal of Quality in a Market with Network Externalities,' International Journal of Industrial Organization, 20(7), 949-964.
18. Kleyner, A., and Sandborn, P. (2008), 'Minimizing Life Cycle Cost by Managing Product Reliability via Validation Plan and Warranty Return Cost,' International Journal of Production Economics, 112(2), 796-807.
19. Ladany, S.P., and Shore, H. (2007), 'Profit Maximizing Warranty Period with Sales Expressed by a Demand Function,' Quality and Reliability Engineering International, 23(3), 291.
20. Li, G., and Rajagopalan, S. (1998), 'A Learning Curve Model with Knowledge Depreciation,' European Journal of Operational Research, 105(1), 143-154.
21. Lin, P.C., and Shue, L.Y. (2005), 'Application of Optimal Control Theory to Product Pricing and Warranty with Free Replacement Under the Influence of Basic Lifetime Distributions,' Computers and Industrial Engineering, 48(1), 69-82.
22. LINDO (2003). LINDO API version 2.0, Lindo Systems Inc., http://www.lindo.com
23. Mantrala, M.K., and Rao, S. (2001), 'A Decision-Support System that Helps Retailers Decide Order Quantities and Markdowns for Fashion Goods,' Interfaces, 31(4), 146-165.
24. Matis, T., Jayaraman, R., and Rangan, A. (2008), 'Optimal Price and Pro Rata Decisions for Combined Warranty Policies with Different Repair Options,' IIE Transactions, 40(10), 984-991.
25. Menezes, M.A.J., and Currim, I.S. (1992), 'An Approach for Determination of Warranty Length,' International Journal of Research in Marketing, 9(2), 177-195.
26. Murthy, D.N.P., and Blischke, W.R. (2000), 'Strategic Warranty Management: A Life-Cycle Approach,' IEEE Transactions on Engineering Management, 47(1), 40-54.
27. Murthy, D.N.P., and Djamaludin, I. (2002), 'New Product Warranty: A Literature Review,' International Journal of Production Economics, 79(3), 231-260.
28. Pitt, L.F., Berthon, P., Watson, R.T., and Ewing, M. (2001), 'Pricing Strategy and the Net,' Business Horizons, 44(2), 45-54.
29. Price, L.J., and Dawar, N. (2002), 'The Joint Effects of Brands and Warranties in Signaling New Product Quality,' Journal of Economic Psychology, 23(2), 165-190.
30. Rahman, A., and Chattopadhyay, G. (2006), 'Review of Long-Term Warranty Policies,' Asai Pacific Journal of Operational Research, 23(4), 453.
31. Ross, S.M. (1995), Stochastic Processes, New York: John Wiley and Sons.
32. Sterman, J.D. (2000), Business Dynamics: Systems Thinking and Modeling for a Complex World, Irwin: McGraw-Hill.
33. Teng, J.T., and Thompson, G.L. (1996), 'Optimal Strategies for General Price-Quality Decision Models of New Products with Learning Production Costs,' European Journal of Operational Research, 93(3), 476-489.
34. Wu, S., and Xie, M. (2008), 'Warranty Cost Analysis for Nonrepairable Services Products,' International Journal of Systems Science, 39(3), 279-288.