Optimisation of a fuzzy inventory model with seasonal demand rate in two different markets

Abstract

The seasonal dependent demand is a major factor for the fluctuations in the demand for seasonal products. To fulfill this demand, the retailer produced a large amount of items, but due to the short time of the season, some items remain in the stock. Due to the nature of the deterioration of the product, the retailer wants to sell all the products in stock. So the alternative marketing is the best way to get more profit with low inventory costs. The presented article is all about the fuzzy seasonal demand which depends on both price and time, and retailers sell the products in both the potential markets say first and second. A second market is required to sell in good profit before all items go bad due to deterioration condition, but due to the different demand in both markets, the fluctuations comes in the demand. To deal with the vagueness of the demand parameter, we use a triangular fuzzy number and defuzzify with the signed-distance method to optimise the total profit function with a numerical example show the application of the model.