Authors: Monalisha Pattnaik
Title: OPTIMIZATION IN FUZZY ECONOMIC ORDER QUANTITY (FEOQ) MODEL WITH DETERIORATING INVENTORY AND UNITS LOST
Keywords: Optimization, Fuzzy, FEOQ, Deterioration, Units Lost.
Background: This model presents the effect of deteriorating items in fuzzy optimal instantaneous replenishment for finite planning horizon. Accounting for holding cost per unit per unit time and ordering cost per order have traditionally been the case of modeling inventory systems in fuzzy environment. These imprecise parameters defined on a bounded interval on the axis of real numbers and the physical characteristics of stocked items dictate the nature of inventory policies implemented to manage and control in the production system.
Methods: The modified fuzzy EOQ (FEOQ) model is introduced, it assumes that a percentage of the on-hand inventory is wasted due to deterioration and considered as an enhancement to EOQ model to determine the optimal replenishment quantity so that the net profit is maximized. In theoretical analysis, the necessary and sufficient conditions of the existence and uniqueness of the optimal solutions are proved and further the concavity of the fuzzy net profit function is established. Computational algorithm using the software LINGO 13.0 version is developed to find the optimal solution.
Results and conclusions: The results of the numerical analysis enable decision-makers to quantify the effect of units lost due to deterioration on optimizing the fuzzy net profit for the retailer. Finally, sensitivity analyses of the optimal solution with respect the major parameters are also carried out. Furthermore fuzzy decision making is shown to be superior then crisp decision making in terms of profit maximization.
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|MLA||Pattnaik, Monalisha. "Optimization in Fuzzy Economic Order Quantity (FEOQ) Model with Deteriorating Inventory and Units Lost." Logforum 10.3 (2014): 2.|
|APA||Monalisha Pattnaik (2014). Optimization in Fuzzy Economic Order Quantity (FEOQ) Model with Deteriorating Inventory and Units Lost. Logforum 10 (3), 2.|
|ISO 690||PATTNAIK, Monalisha. Optimization in Fuzzy Economic Order Quantity (FEOQ) Model with Deteriorating Inventory and Units Lost. Logforum, 2014, 10.3: 2.|