A multi objective geometric programming approach for electronic product pricing problem


Mohsen Fathollah Bayati and Ahmad Makui


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.


DOI: j.msl.2011.02.001

Keywords: Optimal pricing ,Optimization ,Multi-objective decision making ,Geometric programming ,Compromise programming

How to cite this paper:

Bayati, M & Makui, A. (2011). A multi objective geometric programming approach for electronic product pricing problem.Management Science Letters, 1(3), 371-378.


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