Lost sales reduction and quality improvement with variable lead time and fuzzy costs in an imperfect production system

Abstract

This article investigates the effects of lost sales reduction and quality improvement in an imperfect production process under imprecise environment with simultaneously optimizing reorder point, order quantity, and lead time. This study assumes that the demand during lead time follows a mixture of normal distributions and the cost components are imprecise and vague. Under these assumptions, the aim is to study the lost sales reduction and the quality improvement in an uncertainty environment. The objective function in fuzzy sense is defuzzified using Modified Graded Mean Integration Representation Method (MGMIRM). For the defuzzified objective function, theoretical results are developed to establish optimal policies. Finally, some numerical examples and sensitivity analysis are provided to examine the effects of non-stochastic uncertainty.