QUADRATIC PROGRAMMING IN PRICE DETERMINATION OF MULTIPRODUCTS IN A SHORT TERM SCENARIO

Abstract

Companies have gradually been developing a more serious concern with the policy of their products’ price formation and sales mix, since this policy has become a decisive factor for the company success in the present day business environment. However, an interdisciplinary approach to this matter does not exist. To create one is necessary due to the problem’s complexity and the interrelationship among several quantitative and qualitative variables that influence decision making. The price formation and sales mix need a wider approach and it should contemplate a larger number of possible variables. The present study has had as its aim to analyse important concepts for the studies and the development of a mathematical model of quadratic programming, which represents the existent relationships among diverse products and their variables, and which fulfils objectives intended by the company, through determination of the sales prices (and mix), taking into consideration the installed capacity and market constraints. Keywords: Quadratic programming. Price. Multiproducts.