Management of Pricing Policies and Financial Risk as a Key Element for Short Term Scheduling Optimization

In this article the scheduling of batch plants is integrated with pricing decisions. The proposed integrated model simultaneously provides the optimal prices and schedule as opposed to earlier models where prices are usually considered as input data. The main advantages of such formulation are highlighted through a case study where comparison with the traditional approach is carried out. A two-stage stochastic mathematical model is also developed in order to address the uncertainty associated to the demand curve. Finally, financial risk management is discussed.