Coordination of pricing and multi-period production for constant priced goods

This paper addresses the problem of jointly determining a single price and production schedule for a product with seasonal demand, Under the assumption that the ratio of the demands in any two periods does not depend upon the price at which the product is offered, we develop a procedure that guarantees an optimal solution. Perhaps more importantly, however, our model provides insight into the manner in which the firm's production cost increases with the intensity of total demand. (C) 1999 Elsevier Science B.V, All rights reserved.