Using Graph Theory to Solve One Pricing Problem

• Published in: Modern Information Technology and IT Education Vol. 1204; pp. 310 - 324
• Main Authors: Makarovskikh, Tatiana, Savitskiy, Egor, Yakupov, Ruslan
• Format: Book Chapter
• Language: English
• Published: Switzerland Springer International Publishing AG 2021; Springer International Publishing
• Series: Communications in Computer and Information Science
• Subjects: Dijkstra algorithm; Floyd-Warsell algorithm; Optimization; Pricing problems
• ISBN: 9783030782726; 3030782727
• ISSN: 1865-0929; 1865-0937
• DOI: 10.1007/978-3-030-78273-3_29

The paper is devoted to the application of graph theory as one of the most effective tools for assessing various economic indicators. A graph model of an enterprise distribution system based on the classic Dijkstra and Floyd-Warshall algorithms is presented. With the help of the model used, it is possible to calculate the gross profit of an enterprise from trade in a distributed territory. The developed algorithms allow performing calculations taking into account the so-called product flows and determining the maximum profit of a reseller. We show that the average price when the “flow” of products arises depends on the level of dispersion of final prices. In particular, we show that for enterprises with a high average price, the risk of “product flows” is high even for a small dispersion of prices and enterprises with a higher cost of production are recommended to use non-price methods of combating these “product flows”.