The application of fuzzy programming to the aggregate production planning-markdown pricing problem

It is wildly believed that the information sharing and cooperation become important now for improving the performance of the retailer and the manufacturer of the short lifcycle product. This paper suggests a way to enhance the competency of short lifecycle products by integrating the markdown pricing policy into the aggregate production planning. An Aggregate Production Planning-Markdown Pricing Model (APP-MP) has been developed in this paper,which is a fuzzy nonlinear programming with fuzzy objective and fuzzy constraints. The fuzzy programming model can somewhat interpret the uncertainty of business information and be applied to practical APP-MP problem. A numerical example demonstrates the feasibility of applying the proposed model to APP-MP problem. The proposed model, which yields a compromise solution and the decision maker's overall levels of satisfaction, is proved to be effective on making more profits for the manufacturer and the retailer by a numerical example.