Levin, E.J. and Mae, Y. and Wright, R.E. (2004) Profit maximization in a multi-product firm with impatient customers. Journal of the Operational Research Society, 55 (3). pp. 211-219. ISSN 0160-5682
Full text not available in this repository. (Request a copy from the Strathclyde author)Abstract
In this paper, the standard model of profit maximization is extended to include multi-product production in a market characterized by impatient customers. A formal model is presented that includes price, delivery frequency, production run length per set-up and product range as endogenous variables. The model facilitates the analysis of the complex interactions between these variables and highlights the inherent problems relating to profit maximization. For example, offering a broader range of products and/or more rapid delivery may seem to be a sensible response for a multi-product firm with impatient customers in a scenario of depressed demand. However, the analysis shows that such strategies could be counterproductive.
| Item type: | Article |
|---|---|
| ID code: | 6906 |
| Keywords: | economics, manufacturing, multi-product, pricing, delivery lags, inventory, Marketing. Distribution of products, Economic Theory |
| Subjects: | Social Sciences > Commerce > Marketing. Distribution of products Social Sciences > Economic Theory |
| Department: | Strathclyde Business School > Economics |
| Related URLs: | |
| Depositing user: | Strathprints Administrator |
| Date Deposited: | 24 Sep 2008 |
| Last modified: | 12 Mar 2012 10:46 |
| URI: | http://strathprints.strath.ac.uk/id/eprint/6906 |
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