Title: Continuous review inventory model for fuzzy price dependent demand

Authors: Nita H. Shah, Hardik Soni

Addresses: Department of Mathematics, Gujarat University, Ahmadabad – 380009, Gujarat, India. ' Chimanbhai Patel Post Graduate Institute of Computer Applications, Opp. Karnavati Club, Prahaldnagar, S.G. Highway, Ahmedabad – 380015, Gujarat, India

Abstract: In this paper, a continuous review inventory system has been analysed with an objective to determine an (r, Q) policy which minimises the cost function. The present study considers the demand rate, holding cost and shortage cost are sensitive to imprecise selling price. The proposed model assumes that shortages are allowed and completely backlogged and the lead time is fuzzy in nature. The arithmetical operations of fuzzy total cost are performed under function principle and the manager|s k-preference integration representation method is applied to defuzzify the fuzzy total cost. Trapezoidal distribution of fuzzy number is used to work out the shortages. Then the model is solved jointly for (r, Q) policy through generalised reduced gradient (GRG) technique. A rigorous numerical study has been carried out and explained as managerial view point.

Keywords: inventory modelling; continuous review system; trapezoidal fuzzy numbers; TrFN; function principle; modified graded mean integration representation; fuzzy pricing; price dependent demand; demand rate, holding cost; shortage cost; imprecise selling price; fuzzy total cost.

DOI: 10.1504/IJMOM.2011.039527

International Journal of Modelling in Operations Management, 2011 Vol.1 No.3, pp.209 - 222

Published online: 14 Jan 2015 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article