TITLE:
Fuzzy Inventory Model with Variable Production and Selling Price Dependent Demand under Inflation for Deteriorating Items
AUTHORS:
Tanzim Shahabuddin Shaikh, Santosh P. Gite
KEYWORDS:
Weibull Distribution Deterioration, Variable Production Rate, Hexagonal Fuzzy Number, Selling Price Dependent Demand, Inflation
JOURNAL NAME:
American Journal of Operations Research,
Vol.12 No.6,
October
25,
2022
ABSTRACT: The
main purpose of this paper is to develop an inventory model under fuzzy approach by considering the effect of inflation
and time value of money, to determine the optimal time period for inventory cycle and
minimum total average costs. The model is
integrated production inventory model developed where; the Demand has a direct
linear impact on production rate. The model can be divided into four stages. In
the first two stages with original production rate and subsequent change in
production rate, inventory level rises. Third stage is time after the
accumulation of inventory and before the deterioration starts, where demand
which selling price dependent is depreciating the inventory level, while in the
fourth stage deterioration occurs, which is considered to follow two parameter Weibull distribution. The
back-order is not considered. Hexagonal fuzzy numbers are used to derive optimum solution and defuzzification
by graded mean integration representation method. A numerical example is given to demonstrate the applicability of the
purposed model and sensitivity analysis is carried out to reveal the impact of change in parameter values.