An inventory analysis in a multi-echelon supply chain system under asymmetry fuzzy demand: a fmincon optimization

Abstract

In this article, the three-echelon supply chain model is developed with a single supplier, a single vendor and a single buyer in a fuzzy environment. The three-stage inspection technique is considered at the end of the vendor's process to supply high-quality products to the buyer. Moreover, the demand rate of the product in the market is often assumed to be uncertain, and accordingly, in this paper, the uncertainty is handled using fuzzy numbers. The primary goal of this model is to minimize the overall inventory cost relative to the asymmetry hexagonal fuzzy demand. Additionally, a backorder strategy is incorporated to gain customer satisfaction and reduce lost sales. To validate this model, numerical examples are tested and constrained non-linear optimization (i.e. fmincon solver) is performed to derive the optimal solution for the decision variables. Finally, conclusions with potential future directions are provided.