2020•International Journal of Engineering Business ManagementOpen access

Mathematical modeling of optimal product supply strategies for manufacturer-to-group customers based on semi-real demand patterns

Zhiyi Zhuo, Ka Yin Chau, Shi‐Zheng Huang, Yun Kit Ip

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Abstract

Customer demand is the core of the vendor’s implementation of product supply strategies. There are three different patterns of demand: real demand, false demand, and semi-real demand. For this article, we study the product supply strategy formulated for manufacturer-to-group customers based on a semi-real demand pattern. Firstly, we construct two mathematical models in which the manufacturer obtains the best profit based on the two supply modes in the semi-real demand pattern. Secondly, we solve the optimal production volume and optimal pricing. Finally, numerical examples are used to verify the validity of the model. In accordance with the optimization principle, results of the analysis are extended to the range of optimal value of product profit in the demand model, so as to explore the mechanism of manufacturers for maximizing group customers’ product profits under the semi-real demand model.

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What this paper is about

Customer demand is the core of the vendor’s implementation of product supply strategies. There are three different patterns of demand: real demand, false demand, and semi-real demand. For this article, we study the product supply strategy formulated for manufacturer-to-group customers based on a semi-real demand pattern. Firstly, we construct two mathematical models in which the manufacturer obtains the best profit based on the two supply modes in the semi-real demand pattern. Secondly, we solve the optimal production volume and optimal pricing. Finally, numerical examples are used to verify the validity of the model. In accordance with the optimization principle, results of the analysis are extended to the range of optimal value of product profit in the demand model, so as to explore the mechanism of manufacturers for maximizing group customers’ product profits under the semi-real demand model.

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Available abstract

Customer demand is the core of the vendor’s implementation of product supply strategies. There are three different patterns of demand: real demand, false demand, and semi-real demand. For this article, we study the product supply strategy formulated for manufacturer-to-group customers based on a semi-real demand pattern. Firstly, we construct two mathematical models in which the manufacturer obtains the best profit based on the two supply modes in the semi-real demand pattern. Secondly, we solve the optimal production volume and optimal pricing. Finally, numerical examples are used to verify the validity of the model. In accordance with the optimization principle, results of the analysis are extended to the range of optimal value of product profit in the demand model, so as to explore the mechanism of manufacturers for maximizing group customers’ product profits under the semi-real demand model.

Key concepts: Profit (economics), Supply and demand, Demand patterns, Vendor, Demand characteristics, Computer science, Operations research, Demand management

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