Optimal trade-offs of multiple factors in transfer pricing problems

✍ Scribed by Yong Shi; Wikil Kwak; Heeseok Lee

• Book ID: 101287081
• Publisher: John Wiley and Sons
• Year: 1998
• Tongue: English
• Weight: 196 KB
• Volume: 7
• Category: Article
• ISSN: 1057-9214
• DOI: 10.1002/(sici)1099-1360(199803)7:2<98::aid-mcda176>3.0.co;2-x

✦ Synopsis

Transfer pricing problems have been extensively researched by a number of scholars. It is well recognized that transfer pricing problems have a multiple-criteria (objectives) feature and can be formulated as a model of multiplecriteria linear programming. However, few methods have the capability of dealing with all possible optimal tradeoffs of multiple criteria in optimal solutions of the models. In this paper a linear multiple-factor model is developed to provide managers with a more systematic and comprehensive scenario of all possible optimal transfer prices depending on both multiple criteria and multiple constraint levels. The trade-offs of all possible optimal transfer prices can be used as a basis for managers of a corporation to make a high-quality decision in selecting their transfer pricing systems for business competition.