A STOCHASTIC MODEL FOR INVENTORY COST CALCULATION WITH FUZZY DEMAND

摘要

In the traditional inventory systems, demand and lead time data are assumed to be available and follow some probability distribution mostly normal. But in reality supply chain is dynamic in nature and associated with lots of uncertainties. In this paper an attempt is made to model (Q,r) (optimum order quantity, reorder point) policy in uncertain supply chain environment. Imprecise demand is modelled using fuzzy set theory and an iterative procedure is developed to calculate optimum order quantity, reorder point and total cost of maintaining inventory. The iterative procedure is demonstrated using a numerical example and obtained numerical results are compared with their crisp counterpart.