Order selection and pricing methods using flexible quantity and fuzzy approach for buyer evaluation

This paper presents the methods for order selection and pricing of manufacturer (supplier) with make-to-order basis when orders exceed production capacity. By quoting the concepts of triangular fuzzy numbers and linguistic variables, a fuzzy approach to evaluating buyers by taking into account both...

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Veröffentlicht in:European journal of operational research 2008-06, Vol.187 (2), p.415-428
Hauptverfasser: Lin, Hung-Tso, Chang, Wen-Ling
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creator Lin, Hung-Tso
Chang, Wen-Ling
description This paper presents the methods for order selection and pricing of manufacturer (supplier) with make-to-order basis when orders exceed production capacity. By quoting the concepts of triangular fuzzy numbers and linguistic variables, a fuzzy approach to evaluating buyers by taking into account both positive and negative criteria is proposed. According to the classified results of buyers, the orders will be produced with priority, declined, or determined by MIP model. The fixed quantity MIP model and flexible quantity MIP model are employed to determine the produced orders along with the production quantity and the reference amount for price reduction. By applying the concept of TOPSIS, the closeness coefficients for satisfaction grades of orders and for ranking values of buyers are used as the adjusting rates in the final pricing MIP model to set segmented price.
doi_str_mv 10.1016/j.ejor.2007.03.003
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identifier ISSN: 0377-2217
ispartof European journal of operational research, 2008-06, Vol.187 (2), p.415-428
issn 0377-2217
1872-6860
language eng
recordid cdi_proquest_journals_204143176
source RePEc; Elsevier ScienceDirect Journals
subjects Applied sciences
Exact sciences and technology
Fuzzy logic
Fuzzy sets
Integer programming
Inventory control, production control. Distribution
Operational research and scientific management
Operational research. Management science
Order quantity
Order selection
Pricing
Pricing policies
Production
Production capacity
Studies
title Order selection and pricing methods using flexible quantity and fuzzy approach for buyer evaluation
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