Open Enrollment | Subscribe to Printing Impressions HERE
Connect
Follow us on
Advertisement
 

Some Fuzzy Logic --Dickeson

November 2003
Lotfi Zadeh, an electrical engineer in Southern California, calls this a "fuzzy" world we live in—a world where all the rules are "fuzzy logic." It's a gray, nebulous, world of shades and degrees.

We buy sophisticated computer systems to help us price our product. But when it comes to pricing a job, there's no single "right" computer price. Our computers produce a nice, "crisp" number that we mark up and say, "This IS the price." Then we say, "Yeah, right," and proceed to bargain for some fuzzy value based on hunch and guess. We know that budgeted "costs" are just arbitrary fictions. We're groping. As a result, we just give up on the computer for pricing.

Hang on a moment. Maybe all isn't lost for computer pricing. Suppose we use Zadeh's fuzzy logic to come up with a TSP—Target Selling Price. It would be an improvement over what we're doing. Can we try it out without having to spend a bundle? Sure.

Let's use that fuzzy logic to set a target price. It could look something like this table I've whomped up in Excel.
























 
AI Job Target Pricing


Account ID: 22475
Date: 7/29/04
By RVD


Job #: 47589
Job Name: Fictus
Quantity: 32,000


Matrl: $1,246
Avg. Mtrls: 36.00%
Avg. Price: $3,461

ItemGut
Feeling
Assigned
Value
Pricing
Weight
Weight
Ext.
Pays as agreedMostly0.8000.0100.008
Keeps scheduleNot always0.5000.0150.008

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: