What is it about?
This paper proposes the optimal policies for a fuzzy inventory model considering the holding cost and ordering cost as continuous functions of time. Shortages are allowed and partially backlogged. The demand rate is assumed in such to be linearly dependent on time during on-hand inventory, while during the shortage period, it remains constant.
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Why is it important?
The inventory problem is formulated in crisp environment. Considering the demand rate, holding cost and ordering cost as trapezoidal fuzzy numbers, the proposed problem is transformed into fuzzy model. For this fuzzy model, the signed distance method of defuzzification is applied to determine the average total cost (ATC) in fuzzy environment. The objective is to optimize the ATC and the order quantity. One solved example is provided in order to show the applicability of the proposed model
Perspectives
There are several directions for future research. We can discuss the sensitivity test to identify the most sensitive parameters in the model. Another direction of research is to consider the randomness in inventory parameter. Also, the demand and holding cost may be considered as quadratic time dependent.
Dr. PAVAN KUMAR
VIT Bhopal University
Read the Original
This page is a summary of: Optimal policies for inventory model with shortages, time-varying holding and ordering costs in trapezoidal fuzzy environment, Independent Journal of Management & Production, April 2021, Independent Journal of Management and Production,
DOI: 10.14807/ijmp.v12i2.1212.
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