Some applications

Abstract

In this chapter, we apply cooperative and noncooperative decision making methods to real-world decision making problems in decentralized organizations. First, we deal with decision making problems on production and work force assignment in a housing material manufacturer and a subcontract company.We formulate two kinds of two-level programming problems: one is a profit maximization problem of both the housing material manufacturer and the subcontract company, and the other is a profitability maximization problem of them. Applying the interactive fuzzy programming methods for two-level linear and linear fractional programming problems, we derive satisfactory solutions to the problems. Second, we treat a transportation problem in the housing material manufacturer and derive a satisfactory solution to the problem by taking into account not only the degree of satisfaction with respect to objectives of the housing material manufacturer but also those of two forwarding agents to which the housing material manufacturer entrusts transportation of products. Third, as a noncooperative decision making problem, we deal with a purchase problem for food retailing, and formulate a two-level linear programming problem with a food retailer and a distributer. The food retailer deals with vegetables and fruits which are purchased from the distributer; the distributer buys vegetables and fruits ordered from the food retailer at the central wholesale markets in several cities, and transports them by truck from each of the central wholesaler markets to the food retailer’s storehouse. We compute the Stackelberg solution to the two-level linear programming problem in which the profits of the food retailer and the distributer are maximized.