Fuzzy measures for profit maximization with fuzzy parameters

Profit maximization is an important issue to the firms that pursue the largest economic profit possible. This paper extends the situation from the deterministic to uncertain, where the coefficients are represented by fuzzy numbers. Intuitively, when the problem has fuzzy parameters, the derived profit value should be a fuzzy number as well. The extension principle is utilized to develop a pair of two-level mathematical programs to calculate the upper and lower bounds of the profit value at α-cuts. Following the duality theorem and a variable separation technique, the two-level mathematical programs are transformed into a class of one-level signomial geometric programs to solve. An example is given to illustrate the idea proposed in this paper.