A volume flexible fuzzy production inventory model under interactive and simulation approach

Abstract

This paper concerns Economic Production Quantity (EPQ) policies with volume flexiblity manufacturing system for deteriorating items. In this situation, the demand occurs in accordance with stock, after a certain level. In order to make more realistic, this paper proposes that the inventory costs, selling price, storage space, and available budget are defined in imprecise nature. The objective is to determine the optimal production rate and time that maximise the total profit of the system. The equivalent multi-objective problem with space and budget constraints is optimised using-(i) interactive fuzzy decision making approach, (ii) necessity approach jointly with fuzzy simulation and Contractive Mapping Genetic Algorithm (CMGA). The model is illustrated numerically and the results obtained from different approaches are compared.