OPTIMAL POLICY OF THE INTERVAL EPQ MODEL USING C-L INTERVAL INEQUALITY

Abstract

The objective of this work is to study the optimal policy of the classical economic production quantity (EPQ) model under interval uncertainty using interval inequality. To serve this purpose existing arithmetic mean-geometric mean (AM-GM) inequality is extended for interval numbers using c-L interval order relation. Then, using the said AM-GM interval inequality, the optimal policy of the classical EPQ model in the interval environment is developed. Thereafter, the optimality policy of the classical EPQ model in a crisp environment is obtained as a special case of that of the interval environment. Finally, all the optimality results are illustrated with the help of some numerical examples.