A new approach to some possibilistic linear programming problems

In practice, the unit costs/profits of new products or new projects, the lending and borrowing interest rates, and cash flows are always imprecise. We provide an auxiliary multiple objective linear programming model to solve a linear programming problem with imprecise objective and/or constraint coe...

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Bibliographic Details
Published in:Fuzzy sets and systems 1992-07, Vol.49 (2), p.121-133
Main Authors: Lai, Young-Jou, Hwang, Ching-Lai
Format: Article
Language:English
Subjects:
Applied sciences
Exact sciences and technology
multiple objective linear programming
Operational research and scientific management
Operational research. Management science
Portfolio theory
Possibilistic linear programming
risk
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Summary:In practice, the unit costs/profits of new products or new projects, the lending and borrowing interest rates, and cash flows are always imprecise. We provide an auxiliary multiple objective linear programming model to solve a linear programming problem with imprecise objective and/or constraint coefficients. Our strategy is to maximize the most possible value of the imprecise profit. At the same time, we would like to minimize the risk of obtaining lower profit and maximize the possibility of obtaining higher profit. This strategy is equivalent to the practical considerations of financial problems. In this paper, a numeric investment problem is solved for illustrating the new approach.
ISSN:0165-0114
1872-6801
DOI:10.1016/0165-0114(92)90318-X