Fuzzy pricing and marketing planning model: A possibilistic geometric programming approach

During the past few years, many people have been interested in integrated production and marketing planning strategies where demand and cost functions, both, depend on different parameters such as price and marketing expenditure. The primary concern on all previous models is the difficulty on estimating the model parameters such price and marketing elasticity to demand. In this paper, we propose a new possibilistic model which makes it easy to build the overall model based on experts’ opinions. The proposed model is formulated in fuzzy geometric programming and the fuzzy decision is made using the recent advances on optimization techniques. We also design a fuzzy logic controller to facilitate the decision making process. The implementation of the proposed model is demonstrated using two numerical examples.