engleski

Decision Making Model on Bakery Product Range Based on Stochastic Sum-of-Ratios Fractional Programming

One of the basic prerequisites for a bakery to operate in an efficient and effective way is to properly determine the type and quantity of products to be produced. Insufficient quantities result in decreased income, whereas excessive production increases the costs, because bakery products have very short shelf life. Any bakery owner, i.e. manager strives to determine the assortment to be marketed in order to achieve optimum results, i.e. to maximize the profit. In the stated circumstances, different quantitative models can be applied as decision making support. Stochastic models must be used in situations when model parameters and relations cannot be assessed with certainty. The decision making model described in this paper is based on stochastic sum-of-ratios fractional programming. To begin with, the analyzed model has been formulated and explained theoretically. After that, its possible implementation has been demonstrated on a hypothetical example.

decision making model; product planning; efficient and effective business; stochastic fractional programming

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