Integrated market selection and production planning: complexity and solution approaches

Wilco van den Heuvel, OE Kundakcioglu, J Geunes, HE Romeijn, TC Sharkey, Albert Wagelmans

Research output: Contribution to journalArticleAcademicpeer-review

14 Citations (Scopus)
9 Downloads (Pure)


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 production/procurement economies of scale exist in the supply process. The resulting optimization problem we study possesses an interesting structure and we show that although the general problem is {Mathematical expression}-complete, a number of relevant and practical special cases can be solved in polynomial time. We also provide a computationally very efficient and intuitively attractive heuristic solution procedure that performs extremely well on a large number of test instances.
Original languageEnglish
Pages (from-to)395-424
Number of pages30
JournalMathematical Programming
Issue number2
Publication statusPublished - 24 Feb 2011


Dive into the research topics of 'Integrated market selection and production planning: complexity and solution approaches'. Together they form a unique fingerprint.

Cite this