Analyzing price, warranty length, and service capacity under a fuzzy environment: Genetic algorithm and fuzzy system

Abstract

In this article, we propose a bi-objective model for the pricing–queuing problem under a fuzzy environment. We consider two objectives: maximizing the profit function and minimizing the waiting time in queue. Imagine a firm which sells a product in a channel providing after sales services. The sales price and warranty length affect customer demand. We formulate the demand function as a fuzzy system considering the sales price and warranty length. The firm optimizes the sales price and warranty length, as well as waiting time, in the queue of after sales services, to maximize its revenues and minimize waiting time. To solve the derived model, we develop a hybrid solution method of a fuzzy system and a genetic algorithm. Finally, the numerical analysis is done to show the reasonable performance of the solution method and results