Production Planning and Markdown Pricing for a Catalog Manufacturer

这笔赠款提供资金，用于研究直接面向消费者的制造商所面临的运营挑战，这些制造商通过目录产生大部分销售额。这些制造商的业务特点是旺季，在旺季期间出现高峰需求。在旺季，随着需求的展开，一些产品成为快速销售的产品，而另一些产品的销售则受到拖累，制造商必须平衡需求和供应，以避免严重的短缺和过剩。为了克服这一挑战，制造商有两个杠杆可供使用。首先，他们可以在旺季为快速移动的物品安排额外的生产。其次，他们可以为滞销产品提供折扣。本研究将通过一个生产模型来分析这样一个制造商在旺季应该如何制定生产计划和降价定价决策。特别是，分析将集中在制造商如何在多个快速移动的产品之间最佳地分配其产能，以及他们如何最佳地决定哪些产品降价，何时降价以及降价到什么程度。此外，还将设计快速求解方法，并将这些求解方法的性能与最优解进行比较。如果成功实施，本研究的结果将使直接面向消费者的制造商能够在生产计划和降价定价方面做出更好的决策。此外，有效的折扣和生产规划做法应能使供需更好地匹配，这对消费者也有好处。 此外，本研究将有助于动态定价的学术文献，通过分析的情况下，多个产品竞争的生产资源和客户需求。

This grant provides funding for research on the operational challenges faced by direct-to-consumer manufacturers who generate the bulk of their sales through catalogs. The business of such manufacturers is characterized by a high season during which peak demands occur. During the high season, as the demand unfolds and as some products emerge as fast-moving ones while the sales of others are dragging, the manufacturer must balance demand and supply so as to avoid significant shortages and overages. In overcoming this challenge, the manufacturer has two levers at their disposal. Firstly, they can schedule additional production for fast-moving items during the high season. Secondly, they can offer discounts on slow-moving products. The research will analyze, through a mathematical-model, how such a manufacturer should make production planning and markdown pricing decisions during the high season. In particular, the analysis will focus on how the manufacturer can optimally allocate its capacity among multiple fast-moving products, and how they can optimally decide which products to markdown, when and to what extent. In addition, quick solution methods will be devised, and the performance of these solution methods will be compared to the optimal solution.If successfully implemented, the results of this research will enable direct-to-consumer manufacturers to make better decisions on production planning and markdown pricing. Furthermore, efficient discounting and production planning practices should lead to a better match between demand and supply, which is good for the consumer population as well. In addition, this research will contribute to the academic literature on dynamic pricing by analyzing a case where multiple products compete for both production resources and customer demand.