A Two Stage EOQ Model for Deteriorating Products Incorporating Quantity & Freight Discounts, Under Fuzzy Environment

Abstract

As the industrial environment becomes more competitive, supply chain management (SCM) has become essential. Especially in the case of deteriorating products, demand is an imprecise parameter and leads to uncertainty in other parameters like holding cost and total cost. The objective of the current study is to manage procurement & distribution coordination, who faces many barriers because of the imprecise behaviour of the parameters discussed above while calculating economic order quantity (EOQ), which moves from one source to an intermediate stoppage (Stage I) and further to final destination (Stage II) incorporating quantity and freight discounts at the time of transporting goods in stage I and using truckload (TL) and less than truckload (LTL) policy in stage II. Finding solutions for such class of coordination is highly complex. To reduce the complexity and to find the optimal solution, differential evolution approach is used. The model is validated with the help of a case problem.