Approach to decentralized marketing-production planning†

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Abstract
Marketing-production decisions mo planned in a decentralized fashion in most firms. Most of the research in this field, however, assumes that the decisions in the two firms are planned in a centralized fashion. In this paper, a decentralized procedure for planning advertising-production decisions is designed for a recently proposed model of a marketing-production system. The procedure is based upon the goal-coordination principle in control theory. An example is presented to illustrate the performance of the procedure.