Amin Mahmoudi - Islamic Azad University, Qazvin branch
Hassan Shavandi - SharifUniversity of Technology

In this paper we design a fuzzy system to achieve the demand based on input variables of price, warranty length and lead time of order delivery. We uselinguistic terms of expert's opinions to establish the situation of input and output variables and a fuzzy rule base. The fuzzy rule base is integrated with a genetic algorithm to develop ahybrid solution method. The appropriate value of price, warranty length and lead time are obtained by maximizing themanufacturer profit with using proposed hybrid solution. Finally a numerical example is presented to show the performance of proposed approach.

fuzzy system; genetic algorithm; warranty; pricing; lead time; profit optimization