Fuzzy inventory model with allowable shortages and backorder

Zita, S. J.

doi:10.26637/mjm0804/0017

Malaya J. Mat

2020

DOI: 10.26637/mjm0804/0017

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Fuzzy inventory model with allowable shortages and backorder

S. J. Zita¹

Abstract: In this paper, we are going to exhibit an inventory model in which shortages are permitted and that can be completely replaced. The model is derived to compute the economic order quantity and to minimize the total cost. To get the optimal solution closer to the reality, the fuzzy techniques are applied. We use the octagonal fuzzy numbers to fuzzify the inventory quantities like ordering cost, holding cost and backorder cost. The ranking function of octagonal fuzzy numbers is used here for defuzzification. The … Show more

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2024

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An integrated inventory model for non-instantaneous deteriorating item under credit policy and partial backlogging with advertising and price dependent stochastic demand

Mandal¹,

Banu²,

Mondal³

2024

RAIRO-Oper. Res.

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In today’s business world, advertising is one of the most important policies to attract more customers. This policy increases the retailer’s sales and makes the retailer’s business position strong. In this paper, we have considered an integrated inventory model for non-instantaneous deteriorating items with a single supplier and single retailer, where a supplier sells his/her products in the market through a retailer who faces a stochastic demand depending on both retail price and advertisement. Here, to increase the retailer’s demand, the supplier wholesales his/her products to the retailer with a credit period. Since the long credit period increases the demand rate but at the same time, it increases the supplier’s opportunity loss. In this paper, we have discussed about the credit policy and find out, how this policy effective on profit of the supplier, the retailer as well as the whole system. After purchasing, the retailer sells his/her products to his customers with a markup. This markup is based on the supplier’s wholesale price and also on advertising costs. Finally, an integrated profit function has been developed and we have illustrated numerical examples to justify the feasibility of the proposed model. The result indicates that not only the credit period but also an appropriate number of advertisements is more important for maintaining the profit of the supplier, the retailer as well as the integrated profit of the system. We have analyzed the effect of markup on the profit function. We have also analyzed how the profit structure of the suppliers and retailers changes along with the changes in the length of the credit period. An effective algorithm has been presented in the solution procedure to find the optimal solutions of the proposed model. Also, the numerical example with uniform distribution has been carried out. Finally, sensitivity analysis of major parameters has been illustrated to provide managerial insights.

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An integrated inventory model for non-instantaneous deteriorating item under credit policy and partial backlogging with advertising and price dependent stochastic demand

Mandal¹,

Banu²,

Mondal³

2024

RAIRO-Oper. Res.

View full text Add to dashboard Cite

show abstract

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Fuzzy inventory model with allowable shortages and backorder

Cited by 1 publication

References 10 publications

An integrated inventory model for non-instantaneous deteriorating item under credit policy and partial backlogging with advertising and price dependent stochastic demand

An integrated inventory model for non-instantaneous deteriorating item under credit policy and partial backlogging with advertising and price dependent stochastic demand

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