a multi objective geometric programming approach for electronic product pricing problem

a multi objective geometric programming approach for electronic product pricing problem

;Mohsen Fathollah Bayati;Ahmad Makui
Journal of ethnobiology and ethnomedicine 2011 Vol. 1 pp. 371-378
66
bayati2011managementa

Abstract

Nowadays electronic commerce plays an important role in many business activities, operations, and transaction processing. The recent advances on e-businesses have created tremendous opportunities to increase profitability. This paper presents a multi-objective marketing planning model which simultaneously determines efficient marketing expenditure, service cost and product's selling price in two competitive markets. To solve the proposed model, we discuss a multi-objective geometric programming (GP) approach based on compromise programming method. Since our proposed model is a signomial GP and global optimality is not guaranteed for the problem, we transform the model to posynomial form. Finally, the solution procedure is illustrated via a numerical example and a sensitivity analysis is presented.

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