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A fuzzy multi-objective model for capacity allocation and pricing policy of provider in data communication service with different QoS levels

Author

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  • Wei Pan
  • Xianjia Wang
  • Yong-guang Zhong
  • Lean Yu
  • Cao Jie
  • Lun Ran
  • Han Qiao
  • Shouyang Wang
  • Xianhao Xu

Abstract

Data communication service has an important influence on e-commerce. The key challenge for the users is, ultimately, to select a suitable provider. However, in this article, we do not focus on this aspect but the viewpoint and decision-making of providers for order allocation and pricing policy when orders exceed service capacity. It is a multiple criteria decision-making problem such as profit and cancellation ratio. Meanwhile, we know realistic situations in which much of the input information is uncertain. Thus, it becomes very complex in a real-life environment. In this situation, fuzzy sets theory is the best tool for solving this problem. Our fuzzy model is formulated in such a way as to simultaneously consider the imprecision of information, price sensitive demand, stochastic variables, cancellation fee and the general membership function. For solving the problem, a new fuzzy programming is developed. Finally, a numerical example is presented to illustrate the proposed method. The results show that it is effective for determining the suitable order set and pricing policy of provider in data communication service with different quality of service (QoS) levels.

Suggested Citation

  • Wei Pan & Xianjia Wang & Yong-guang Zhong & Lean Yu & Cao Jie & Lun Ran & Han Qiao & Shouyang Wang & Xianhao Xu, 2012. "A fuzzy multi-objective model for capacity allocation and pricing policy of provider in data communication service with different QoS levels," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(6), pages 1054-1063.
    • Handle: RePEc:taf:tsysxx:v:43:y:2012:i:6:p:1054-1063
    DOI: 10.1080/00207721.2010.549581
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    Cited by:

    1. Nihat Kasap & Hasan Hüseyin Turan & Hüseyin Savran & Berna Tektas-Sivrikaya & Dursun Delen, 2018. "Provider selection and task allocation in telecommunications with QoS degradation policy," Annals of Operations Research, Springer, vol. 263(1), pages 311-337, April.
    2. Hui-Chih Hung & Chung-Yu Chung & Muh-Cherng Wu & Wan-Ling Shen, 2017. "A membership pricing policy to facilitate service scale-expansion," The Service Industries Journal, Taylor & Francis Journals, vol. 37(3-4), pages 167-189, March.

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