Abstract
This paper considers an inventory model in which the shortages are backlogged and the demand is dependent on unit cost. An optimum value for average total cost is calculated by considering various input costs, lot size and maximum inventory under fuzzy environment. The process of defuzzification is done by using the signed distance method. Numerical example and sensitivity analysis is given for calculating both crisp and fuzzy values of the total cost.
Highlights
The incorporation of fuzzy set theory in decision making has drawn much attention in decision making
Article History: Received: 11 January 2021; Accepted: 27 February 2021; Published online: 5 April 2021 Abstract: This paper considers an inventory model in which the shortages are backlogged and the demand is dependent on unit cost
The development of an effective inventory model is based on a proper balance between the carrying cost and ordering cost which will determine the lot-size with minimum total annual cost
Summary
The incorporation of fuzzy set theory in decision making has drawn much attention in decision making. The development of an effective inventory model is based on a proper balance between the carrying cost and ordering cost which will determine the lot-size with minimum total annual cost. Vujoseric et al developed an inventory model using triangular and trapezoidal fuzzy numbers and applied centroid method for defuzzification to estimate the total cost. Harish Nagar &Priyankasurana developed an inventory model for deteriorating items with varying demand and used pentagonal fuzzy numbers.K.Syed&L.A.Aziz proposed an inventory model without backorders using the method of signed distance fordefuzzification. P.K.DeApurvaRawat prepared EOQ model without shortages using fuzzy numbers and computed the annual inventory cost. In this research work the decision variables are computed for an inventory model in which the demand varies with respect to unit cost in both crisp and fuzzy environment. Signed distance method is employed for defuzzification with numerical example
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