A fuzzy optimization model for single-period inventory problem

H. Behret*, C. Kahraman

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Citations (Scopus)

Abstract

In this paper, the optimization of single-period inventory problem under uncertainty is analyzed. Due to lack of historical data, the demand is subjectively determined and represented by a fuzzy distribution. Uncertain demand causes an uncertain total cost function. This paper intends to find an analytical method for determining the exact expected value of total cost function for a fuzzy single-period inventory problem. To determine the optimum order quantity that minimizes the fuzzy total cost function we use the expected value of a fuzzy function based on credibility theory. The closed-form solutions to the optimum order quantities and corresponding total cost values are derived. Numerical illustrations are presented to demonstrate the validity of the proposed method and to analyze the effects of model parameters on optimum order quantity and optimum cost value. The proposed methodology is applicable to other inventory models under uncertainty.

Original languageEnglish
Title of host publicationProceedings of the World Congress on Engineering 2011, WCE 2011
Pages1100-1105
Number of pages6
Publication statusPublished - 2011
EventWorld Congress on Engineering 2011, WCE 2011 - London, United Kingdom
Duration: 6 Jul 20118 Jul 2011

Publication series

NameProceedings of the World Congress on Engineering 2011, WCE 2011
Volume2

Conference

ConferenceWorld Congress on Engineering 2011, WCE 2011
Country/TerritoryUnited Kingdom
CityLondon
Period6/07/118/07/11

Keywords

  • Credibility theory
  • Fuzzy demand
  • Fuzzy optimization
  • Single-period inventory problem

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