An Imprecise EOQ Model for Non-instantaneous Deteriorating Item with Imprecise Inventory Parameters Using Interval Number

Abstract

In this paper, an imprecise EOQ model for non-instantaneous deteriorating item with different demand rate, shortages and salvage value is formulated and solved with inventory parameters like demand rate, holding cost, deteriorating cost, shortage cost and salvage value which are considered to be imprecise. The rate of deterioration here is assumed to be constant but imprecise. Here the impreciseness of the above inventory parameters are assumed as interval numbers which are made crisp representations them in parametric forms. For the first time, total average cost of the system is presented by introducing parametric functional form of interval number. The optimal order cycle, the optimal shortage period and the optimal order quantity of the proposed imprecise model are derived by minimizing the total average cost. A numerical example is presented to illustrate the solution of the proposed imprecise model. Finally a graphical representation of the optimal solution is provided to demonstrate the proposed approach. It is seen that at the lower ends of the intervals, the average total cost is maximum where as at the corresponding upper ends, the said cost is lowest.