Fuzzy set in product planning decision

Abstract

In the analysis of product planning in a marketing decision system, it is customary to tackle multi-dimensionality of the problem by the use of multi-objective mathematical programming techniques. No doubt, there exists several such techniques which have been applied successfully to real life problems. This paper presents a multi-objective integer programming algorithm, based on fuzzy set theory which can solve multiple, conflicting and non-commensurable objectives in the decision environment. The interactive feature of this algorithm helps the decision-maker to make a trade-off analysis in terms of his satisfaction over the achievement levels of the objectives. The validity of this algorithm has been demonstrated through a numerical example. At the same time, it’s applicability has been highlighted by utilizing it for a handloom based product planning problem with various such objectives, viz. growth, income and cost with respect to cultural and market related constraints taking a case study in Indian context. It has been observed that multi-criteria decision making based on fuzzy sets is not only effective for such a problem, but can be applied successfully to similar such humanistic decision systems, when human factor is considered to be important.