In this paper, we consider Cobb-Douglas production function based model in a firm under fuzzy environment, and its solution technique by making use of geometric programming. A firm may use many finite inputs such as labour, capital, coal, iron etc. to produce one single output. It is well known that the primary intention of using production function is to determine maximum output for any given combination of inputs. Also, the firm may gain competitive advantages if it can buy and sell in any quantities at exogenously given prices, independent of initial production decisions. On the other hand, in reality, constraints and/or objective functions in an optimization model may not be crisp quantities. These are usually imprecise in nature and are better represented by using fuzzy sets. Again, geometric programming has many advantages over other optimization techniques. In this paper, Cobb-Douglas production function based models are solved by applying geometric programming technique under fuzzy environment. Illustrative numerical examples further demonstrates the feasibility and efficiency of proposed model under fuzzy environment. Conclusions are drawn at last.
Mandal, Palash; Garai, Arindam; and Roy, Tapan K.
Cobb-Douglas Based Firm Production Model under Fuzzy Environment and its Solution using Geometric Programming,
Applications and Applied Mathematics: An International Journal (AAM), Vol. 11,
1, Article 31.
Available at: https://digitalcommons.pvamu.edu/aam/vol11/iss1/31