Coordination of marketing and production for price and leadtime decisions

被引:85
作者
Pekgun, Pelin [1 ]
Griffin, Paul M. [1 ]
Keskinocak, Pinar [1 ]
机构
[1] Georgia Inst Technol, H Milton Stewart Sch Ind & Syst Engn, Atlanta, GA 30332 USA
基金
美国国家科学基金会;
关键词
leadtime; pricing; marketing/production coordination;
D O I
10.1080/07408170701245346
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
We study a firm which serves customers that are sensitive to quoted price and leadtime, with pricing and leadtime decisions being made by the marketing and production departments, respectively. We analyze the inefficiencies created by the decentralization of the price and leadtime decisions. In the decentralized setting, the total demand generated is larger, leadtimes are longer, quoted prices are lower, and the firm's profits are lower as compared to the centralized setting. We show that coordination can be achieved using a transfer price contract with bonus payments. We also provide insights on the sensitivity of the optimal decisions with respect to market characteristics, sequence of decisions and the firm's capacity level.
引用
收藏
页码:12 / 30
页数:19
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