Profit and Return on Inventory Investment Maximization to Fuzzy Pricing and Inventory Problem with General Demand Function

The integration or coordination of production and marketing functions has been known to be crucial in practice for diminishing their conflicts and increasing a firm'sprofit by reducing opportunity losses incurred from separate or independent decision-making. In this paper, a marketinginventoryplanning model is developed to set price, marketing expenditure and lotsize for the manufacturer by maximizing profit and return on inventory investment. We formulate thearea with hi-objective function with fuzzy trapezoidal parameters and general customer demand function. After applying appropriate strategies to defuzzify the original model, the equivalent hi-objective crisp model is then transformed by a fuzzy goal programming method. A soft computing is applied to solve the final crisp problem

Keywords:

pricing , inventory investment , fuzzy multiple objective optimization , general fuzzy demand