A branch-and-bound method for the fixed charge transportation problem
Management Science
Fully Polynomial Approximation Schemes for Single-Item Capacitated Economic Lot-Sizing Problems
Mathematics of Operations Research
Cutting planes in integer and mixed integer programming
Discrete Applied Mathematics
Introduction to Global Optimization (Nonconvex Optimization and Its Applications)
Introduction to Global Optimization (Nonconvex Optimization and Its Applications)
Requirements Planning with Pricing and Order Selection Flexibility
Operations Research
Adaptive dynamic cost updating procedure for solving fixed charge network flow problems
Computational Optimization and Applications
A review of recent advances in global optimization
Journal of Global Optimization
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In a capacitated multi-item dynamic pricing problem one maximizes the profit by choosing a proper production level as well as pricing policy, where the latter depends on a satisfied demand. The objective function involves inventory, production and setup costs, and revenue functions. The products are required to satisfy joined production capacities. We consider a bilinear reduction of the linear mixed integer formulation of the problem and prove that the problem is equivalent to finding a global maximum of the bilinear problem. A heuristic algorithm is proposed, based on the reduction technique. Numerical experiments confirm the efficiency of the proposed technique.