TY - JOUR
T1 - Global Optimization for a Developed Price Discrimination Model: A Signomial Geometric Programming Based Approach
AU - Moradi, Saman
AU - Omrani, Hashem
AU - Emrouznejad, Ali
N1 - This is an Accepted Manuscript of an article published by Taylor & Francis Group in Journal of the Operational Research Society on 24 March 2020, available online at: http://www.tandfonline.com/[10.1080/01605682.2019.1678408
PY - 2020/3/24
Y1 - 2020/3/24
N2 - This paper presents a price discrimination model for a manufacturer who acts in two different markets. In order to have a fair price discrimination model and compare monopoly and competitive markets, it is assumed that there is no competitor in the first market (monopoly market) and there is a strong competitor in the other market (competitive market). The manufacturer objective is to maximize the total benefit in both markets. The decision variables are selling price, lot size, marketing expenditure, customer service cost, flexibility and reliability of production process, set up costs and quality of products. The proposed model in this paper is a signomial geometric programming problem which is difficult to solve and find the globally optimal solution. So, this signomial model is converted to a posynomial geometric type and using an iterative method, the globally optimal solution is found. To illustrate the capability of the proposed model, a numerical example is solved and the sensitivity analysis is implemented under different conditions.
AB - This paper presents a price discrimination model for a manufacturer who acts in two different markets. In order to have a fair price discrimination model and compare monopoly and competitive markets, it is assumed that there is no competitor in the first market (monopoly market) and there is a strong competitor in the other market (competitive market). The manufacturer objective is to maximize the total benefit in both markets. The decision variables are selling price, lot size, marketing expenditure, customer service cost, flexibility and reliability of production process, set up costs and quality of products. The proposed model in this paper is a signomial geometric programming problem which is difficult to solve and find the globally optimal solution. So, this signomial model is converted to a posynomial geometric type and using an iterative method, the globally optimal solution is found. To illustrate the capability of the proposed model, a numerical example is solved and the sensitivity analysis is implemented under different conditions.
UR - https://www.tandfonline.com/doi/abs/10.1080/01605682.2019.1678408?journalCode=tjor20
U2 - 10.1080/01605682.2019.1678408.
DO - 10.1080/01605682.2019.1678408.
M3 - Article
JO - Journal of the Operational Research Society
JF - Journal of the Operational Research Society
SN - 0160-5682
ER -