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A Continuous Review Inventory Model with Fuzzy Service Level Constraint and Fuzzy Random Variable Parameters

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Abstract

This paper presents a continuous review inventory system in the presence of fuzziness and randomness in demand and cost parameter. In the realistic situations, determination of the stock-out cost is often difficult. Instead of having stock-out cost term in the objective function, a condition on the service level is established on the model. The model is constructed as a fuzzy stochastic optimization problem, and we developed a methodology to obtain the optimal solutions such that total expected annual cost is minimized in the fuzzy sense. A numerical example is included to illustrate the proposed methodology.

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Acknowledgements

The authors would like to express gratitude to the Editor-in-Chief, Action Editor, and anonymous referees for their helpful and constructive comments that have led to a substantial improvement of the paper.

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Authors and Affiliations

  1. Indian Institute of Technology Kharagpur, Kharagpur, 721302, West Bengal, India

    Debjani Chakraborty & Sushil Kumar Bhuiya

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  1. Debjani Chakraborty
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  2. Sushil Kumar Bhuiya
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Correspondence to Debjani Chakraborty.

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Chakraborty, D., Bhuiya, S.K. A Continuous Review Inventory Model with Fuzzy Service Level Constraint and Fuzzy Random Variable Parameters. Int. J. Appl. Comput. Math 3, 3159–3174 (2017). https://doi.org/10.1007/s40819-016-0295-z

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  • DOI: https://doi.org/10.1007/s40819-016-0295-z

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