Mathematical modeling of economic order quantity in a fuzzy inventory problem under shortages

Abstract

The purpose of this article is to develop an EOQ model to find the optimal order quantity of inventory items where shortages are allowed. Here shortages are uncertain and characterized by triangular fuzzy number and all other parameters like carrying costs, ordering cost, demand and time are considered as crisp numbers. For defuzzification sign distance ranking method has been employed. Total cost in fuzzy environment has been calculated and then by applying sign distance method corresponding crisp values have been calculated. The results have been compared and discussed with sensitivity analysis. To demonstrate the efficiency and feasibility of the proposed approach, one numerical example [2] has been solved with the existing method.