The rich literature in operation management that deals with the supply side of the firm (procurement, production and transportation) typically focus on cost minimization, by assuming that demands and product prices are exogenous to the operation management problem. Similarly, the literature within marketing, dealing with the demand side, focus on sales maximization, where the operations costs are neglected or (at best) have a particularly inaccurate representation.
The dichotomy between the supply and demand sides analytical models reflect the traditional organizational structures, where supply-side decisions are ”decentralized” to production or operations units and the demand-side decisions to sales and marketing units. Decisions in both functional units are made in isolation or, at best, in a sequential manner, where the marketing unit selects prices and promotions without proper recognition of the operational consequences and subsequently transmit information of their marketing choices to the operational units.
The main objective for the research group in "Integrated Market Dynamics and Logistics" is to develop and solve mathematical models in manufacturing that jointly decides prices and production quantities and where the objective is to maximize the company profit.