Abstract

This study focuses on the profit apportionment problem in concerns with mutual ownership between the concern members. The analysis draws upon the following results: 1. (i) Weil's matrix algebraic formula for profit apportionment, 2. (ii) Wallin's fuzzy linear programming model, 3. (iii) Ramik and Rimanek's model for transforming fuzzy inequalities into ordinary (crisp) inequalities. The study extends the sensitivity analysis presented by Wallin, through incorporating imprecise profit aspirations and trade-off intervals in the problem formulation. Due to Weil's formula the approach is applicable to large scale concern structures. The fuzzy LP-framework provides one approach to expressing subjective imprecision in the aspirations of the decision maker, with obvious relevance for concern management.

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