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A hybrid credibility-based fuzzy multiple objective optimisation to differential pricing and inventory policies with arbitrage consideration

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  • R. Ghasemy Yaghin
  • S.M.T. Fatemi Ghomi
  • S.A. Torabi

Abstract

In most markets, price differentiation mechanisms enable manufacturers to offer different prices for their products or services in different customer segments; however, the perfect price discrimination is usually impossible for manufacturers. The importance of accounting for uncertainty in such environments spurs an interest to develop appropriate decision-making tools to deal with uncertain and ill-defined parameters in joint pricing and lot-sizing problems. This paper proposes a hybrid bi-objective credibility-based fuzzy optimisation model including both quantitative and qualitative objectives to cope with these issues. Taking marketing and lot-sizing decisions into account simultaneously, the model aims to maximise the total profit of manufacturer and to improve service aspects of retailing simultaneously to set different prices with arbitrage consideration. After applying appropriate strategies to defuzzify the original model, the resulting non-linear multi-objective crisp model is then solved by a fuzzy goal programming method. An efficient stochastic search procedure using particle swarm optimisation is also proposed to solve the non-linear crisp model.

Suggested Citation

  • R. Ghasemy Yaghin & S.M.T. Fatemi Ghomi & S.A. Torabi, 2015. "A hybrid credibility-based fuzzy multiple objective optimisation to differential pricing and inventory policies with arbitrage consideration," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(14), pages 2628-2639, October.
    • Handle: RePEc:taf:tsysxx:v:46:y:2015:i:14:p:2628-2639
    DOI: 10.1080/00207721.2013.875239
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    References listed on IDEAS

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    Cited by:

    1. Irina Georgescu, 2024. "Inventory problems and the parametric measure $m_{\lambda}$," Papers 2408.02700, arXiv.org.
    2. Ghanbarzadeh-Shams, M. & Ghasemy Yaghin, R. & Sadeghi, A.H., 2022. "A hybrid fuzzy multi-objective model for carpet production planning with reverse logistics under uncertainty," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).
    3. Ghasemy Yaghin, R. & Farmani, Zahra, 2023. "Planning a low-carbon, price-differentiated supply chain with scenario-based capacities and eco-friendly customers," International Journal of Production Economics, Elsevier, vol. 265(C).

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