Abstract
In this paper a two level supply chain system is studied, in which the final demand is assumed to be fuzzy with triangular membership function. The inventory control policy of (r, Q) is followed for this system and unsatisfied demand is assumed to be back ordered. The objective is to minimize the total cost of the system, including ordering, holding and shortage costs. The model happens to be a nonlinear programming. Considering the complexity arising from the model, we also develop a genetic algorithm to obtain a near-optimal solution. The method is illustrated through some numerical examples.
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