The Study Of Batch Production And Pricing Problems For Deteriorating Products

Batch production and pricing strategies are comprehensive decision-making problems to maximize the profits of a company under uncertain market demand and fierce market competition. With the rapid development of economy, resource and environmental problems become more and more outstanding. Just maximizing profits is not enough to realize the harmonious development between the economy and the resources and environment. The purpose of this thesis is to study closed-loop supply chain to realize the management of material flow and reduce pollution emission and residual waste. The issues discussed are especially important for dete-riorating products in the process of production and sales. Closed-loop supply chain is a complete cycle of supply chain, in which the company achieves the closed-off management from procurement to final sales. It includes the recycling of return-able transport items in the reverse logistics. When the returnable transport items are returned to the supplier, the required time is often uncertain. Therefore, this thesis studies the batch production and pricing strategies of deteriorating items in a closed-loop supply chain.Firstly, the case that product price can be adjusted is discussed. When the product price is given, in order to solve the optimal batch production strategy prob-lem, a single stage mean-standard deviation model is built by using the Markowitz mean-variance method. Secondly, the case that product price cannot be adjusted is studied. When the product price fluctuates, the product market demand also fluc-tuates. A new two-stage fuzzy optimization model is developed for optimal pricing and batch production strategy problems. In this case, the uncertain market demand is described by a linear decreasing function of price. In the sales stage, the price strategy is made to maximize the profits; while in the ordering stage, the batch production strategy is made to minimize the cost of the whole system. Using the second-order necessary condition, the analytical expressions for the optimal value function of the ordering stage are obtained. Finally, this thesis conducts some nu-merical experiments to demonstrate the effectiveness of the proposed optimization methods.The major new results of this thesis include the following several aspects:(?) Under the environment of closed-loop supply chain, two new optimization models are established for batch production and pricing strategy problems of the deterio-rating products. One is a single stage mean-standard deviation optimization model of the batch production strategy, another is a two-stage fuzzy programming model, in which both the batch production and pricing strategies are considered, (?) When the uncertain return time obeys the uniform distribution, the proposed single stage mean-standard deviation model is turned into a deterministic equivalent program-ming model.(?) As for two-stage fuzzy programming model, the optimal value function of the ordering stage is derived, and turned into a single stage optimization model by using the second-order necessary condition. When the uncertain return time obeys the trapezoidal possibility distribution, the single stage model is turned into an equivalent deterministic model; (?) Taking the advantages of the structural characteristics of the equivalent optimization models, the corresponding decomposi-tion solution methods are designed, and some numerical experiments are preformed to illustrate the validness of the proposed optimization methods.