A piecewise linear production cost functions applied to flat panel display industry in Malaysia

Abstract

The purpose of this paper is to develop a piecewise linear cost functions to represent the aggregate production plan with fuzzy environment conditions. Relevant variables facing considerable extent of uncertainty were selected from the objective function and having probability distribution between a least pessimistic value and a highest optimistic value. The total cost of production (C) distributes within a range between its pessimistic and optimistic values whilst having a most probable value of one within that range. Data were collected from Malaysian industry to test and validate the developed piecewise linear cost functions for LCD aggregate production plan. The model developed with piecewise cost functions can be best recommended to the instances with fuzzy environment conditions, because it includes the capacity in considering a range of input variables than forecasting with an exact series of input variables.