Analysing Price, Quality and Lead Time Decisions with the Hybrid Solution Method of Fuzzy Logic and Genetic Algorithm

Subject Areas : Tectonostratigraphy

amin  mahmoudi ¹ (Department of Industrial and mechanical Engineering, Islamic Azad University, Qazvin branch, Qazvin, Iran)
hassan  shavandi ² (Department of Industrial Engineering, Sharif University of Technology, Tehran, Iran)
khashayar  nouhi ³ (Department of Industrial and mechanical Engineering, Islamic Azad University, Qazvin branch, Qazvin,)

Received: 2011-09-02 Accepted : 2012-02-27 Published : 2012-03-15

Keywords: Genetic Algorithm, Fuzzy Logic, Linguistic variable, Pricing, Quality level, Lead time,

Abstract :

In this paper, the problem of determining the quality level, lead time for order delivery and price of a product produced by a manufactureris considered. In this problem the demand for the product is influenced by all three decision variables: price, lead time and quality level. Toformulate the demand function, a fuzzy rule base that estimates the demand value based on the three decision variables is developed. To doso, the linguistic knowledge of experts in the form of if-then rules is used to establish the fuzzy system. Moreover, in order to solve theproblem, a genetic algorithm integrating the fuzzy rule base is proposed. Finally, to support the validity of the proposed solution, anumerical study is provided.