A NONLINEAR PROGRAMMING MODEL FOR PRODUCT LINE OPTIMIZATION

Many retailers and wholesalers stock items, such as TV sets, which are produced by different manufacturers and marketed under different brand names. Two key decisions need to be made for any given brand: (1) whether to stock it at all, and (2) the appropriate order quantity. Because some customers may purchase a substitute brand if their first choice is not stocked, demands are dependent. Decisions about a given brand are related to the decisions for the others. This paper describes a nonlinear programming model which makes both decisions so as to maximize total profit.

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  • Accession Number: 00607882
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Apr 30 1991 12:00AM