Investigation and analysis of fuzzy EOQ model for price sensitive and stock dependent demand under shortages

Abstract

This study analyzes a fuzzy EOQ model for deteriorating items having priced sensitive and stock dependent demand function under permissible shortages. Displaying a large quantity of goods by vendors always attracts customers to purchase more in several business practices which have an optimistic correlative with stock. Therefore, demand function taken as Price Sensitive and stock dependent in this study. A crisp model developed and then Fuzzified the ordering cost, holding cost, deterioration rate, and shortage cost as a fuzzy trapezoidal number. The total cost functions defuzzify by applying a signed distance method. A numerical illustration is used to validate the given fuzzy EOQ model. At the last, sensitivity analysis has also been used to investigate the impact of variations in the values of system parameters.