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Fuzzy Random Continuous Review Inventory Model with Controllable Lead-Time and Exponential Crashing Cost

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Engineering Mathematics and Computing

Part of the book series: Studies in Computational Intelligence ((SCI,volume 1042))

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Abstract

In this paper, a continuous review inventory model is studied in a mixed imprecise and uncertain environment. A methodology is proposed to quantify both imprecise (fuzzy) and stochastic (random) information simultaneously. This enables the simultaneous inclusion of both the inherent randomness present in any real-life inventory situation and the subjective evaluation of the decision maker into the model. A methodology is developed by assuming the annual customer demand to be a continuous fuzzy random variable following normal distribution with associated fuzzy probability density function. Also the lead-time is assumed to be a control parameter and a lead-time crashing cost, in the form of an exponential function, is incorporated into the total inventory cost. The optimal values of the decision variables are determined so that the crisp equivalent of total expected annual inventory cost is a minimum. Numerical analysis is presented to illustrate the proposed model and provide some insights.

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Authors and Affiliations

  1. Department of Mathematics, Techno India University, Kolkata, West Bengal, 700091, India

    Wasim Firoz Khan & Oshmita Dey

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  1. Wasim Firoz Khan
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  2. Oshmita Dey
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Correspondence to Oshmita Dey .

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Editors and Affiliations

  1. Division of Maritime Transportation, Mokpo National Maritime University, Mokpo, Korea (Republic of)

    Park Gyei-Kark

  2. Department of Applied Sciences, Haldia Institute of Technology, Haldia, India

    Dipak Kumar Jana

  3. Department of Applied Sciences, Haldia Institute of Technology, Haldia, India

    Prabir Panja

  4. Department of Electronic Engineering, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Malaysia

    Mohd Helmy Abd Wahab

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Khan, W.F., Dey, O. (2023). Fuzzy Random Continuous Review Inventory Model with Controllable Lead-Time and Exponential Crashing Cost. In: Gyei-Kark, P., Jana, D.K., Panja, P., Abd Wahab, M.H. (eds) Engineering Mathematics and Computing. Studies in Computational Intelligence, vol 1042. Springer, Singapore. https://doi.org/10.1007/978-981-19-2300-5_3

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  • DOI: https://doi.org/10.1007/978-981-19-2300-5_3

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  • Print ISBN: 978-981-19-2299-2

  • Online ISBN: 978-981-19-2300-5

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