Title: A multi-product newsboy problem with fuzzy customer demand and a storage space constraint

Authors: Pankaj Dutta

Addresses: Shailesh J. Mehta School of Management, Indian Institute of Technology, Bombay, Powai, Mumbai 400076, India

Abstract: This article provides a fuzzy inventory model for multi-product newsboy problem subject to a storage space constraint. Common characteristics of inventory systems include uncertain demand. Several authors have examined constrained multi-item newsboy problem with stochastic demand. In this paper, a model for cases of fuzzy demands is constructed. The objective is to maximise the total resultant profit by considering fuzzy demands together with a storage space constraint. The optimisation is achieved using interval-valued expectation of a fuzzy number. Based on the bisection method, an efficient iterative algorithm is adopted to identify the optimal order quantities. The optimality conditions are justified through a numerical example.

Keywords: fuzzy demand; interval-valued expectation; inventory modelling; newsboy problem; customer demand; storage space constraints; stochastic demand; inventory management.

DOI: 10.1504/IJOR.2010.033139

International Journal of Operational Research, 2010 Vol.8 No.2, pp.230 - 246

Published online: 09 May 2010 *

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