An economic production quantity problem with fuzzy backorder and fuzzy demand

Abstract

Optimization models based on fuzzy set theory are relevant to the process industry, where there are many uncertainties that are inherently fuzzy. In this paper, we incorporate backorders (i.e the inventory to go below zero) and cycle time in a fuzzy Economic Production Quantity (EPQ) model. The uncertainties in the backorders and in the demand for different products are modeled using triangular possibility distributions. We illustrate the model with an example that describes a typical decision making problem in the paper industry. © 2013 Springer-Verlag.