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Chinese Journal of Management Science ›› 2016, Vol. 24 ›› Issue (10): 133-140.doi: 10.16381/j.cnki.issn1003-207x.2016.10.015

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Production-Marketing Coordination under Demand and Leadtime Uncertainty

YE Tao-feng1, DA Qing-li2, XU Xuan-guo3   

  1. 1. School of Economics & Management, Jiangsu University of Science and Technology, Zhenjiang 212003, China;
    2. School of Economics & Management, Southeast University, Nanjing 211189, China;
    3. School of Economics & Management, Shandong Agricultural University, Taian 271018, China
  • Received:2015-01-01 Revised:2015-06-20 Online:2016-10-20 Published:2016-12-27

Abstract: A make-to-oder firm which satisfies the demand that is dependent on both price and quoted leadtime is considered in this paper. The firm operates in the decentralized framework in which pricing decision is delegated to the marketing department and replenishment and leadtime quotation decisions are delegated to the production department. The interactions between marketing and production are modelled as a Nash game and the existence and uniqueness of the equilibrium decisions are demonstrated. A mechanism that enables the firm to coordinate the decisions of the two departments is developed. Moreover, extensive numerical studies are conducted to illustrate how the optimal/equilibrium decisions vary with different parameters and the situations under which the firm does not need to apply the complicated coordination mechanism are identified.

Key words: leadtime, demand uncertainty, production-marketing coordination

CLC Number: