A fuzzy multi-objective model for capacity allocation and pricing policy of provider in data communication service with different QoS levels

Wei Pan, Xianjia Wang, Yong Guang Zhong, Lean Yu, Cao Jie, Lun Ran, Han Qiao, Shouyang Wang*, Xianhao Xu

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    12 Citations (Scopus)

    Abstract

    Data communication service has an important influence on e-commerce. The key challenge for the users is, ultimately, to select a suitable provider. However, in this article, we do not focus on this aspect but the viewpoint and decision-making of providers for order allocation and pricing policy when orders exceed service capacity. It is a multiple criteria decision-making problem such as profit and cancellation ratio. Meanwhile, we know realistic situations in which much of the input information is uncertain. Thus, it becomes very complex in a real-life environment. In this situation, fuzzy sets theory is the best tool for solving this problem. Our fuzzy model is formulated in such a way as to simultaneously consider the imprecision of information, price sensitive demand, stochastic variables, cancellation fee and the general membership function. For solving the problem, a new fuzzy programming is developed. Finally, a numerical example is presented to illustrate the proposed method. The results show that it is effective for determining the suitable order set and pricing policy of provider in data communication service with different quality of service (QoS) levels.

    Original languageEnglish
    Pages (from-to)1054-1063
    Number of pages10
    JournalInternational Journal of Systems Science
    Volume43
    Issue number6
    DOIs
    Publication statusPublished - 1 Jun 2012

    Keywords

    • Fuzzy set theory
    • Order allocation
    • Pricing policy
    • Quality of service (QoS)

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