Integrated market selection and production planning: complexity and solution approaches

Emphasis on effective demand management is becoming increasingly recognized as an important factor in operations performance. Operations models that account for supply costs and constraints as well as a supplier’s ability to influence demand characteristics can lead to an improved match between supply and demand. This paper presents a class of optimization models that allow a supplier to select, from a set of potential markets, those markets that provide maximum profit when W. Van den Heuvel (B) · A. P. M. Wagelmans Econometric Institute, Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands e-mail: [email protected] A. P. M. Wagelmans e-mail: [email protected] O. E. Kundakcioglu Department of Industrial Engineering, University of Houston, E209 Engineering Bldg. 2, Houston, TX 77204-4008, USA e-mail: [email protected] J. Geunes Department of Industrial and Systems Engineering, University of Florida, P.O. Box 116595, Gainesville, FL 32611-6595, USA e-mail: [email protected] H. E. Romeijn Department of Industrial and Operations Engineering, The University of Michigan, 1205 Beal Avenue, Ann Arbor, MI 48109-2117, USA e-mail: [email protected] T. C. Sharkey Center for Industrial Innovation, Rensselaer Polytechnic Institute, 110 8th St. Suite 5015, Troy, NY 12180-3590, USA e-mail: [email protected]