Inventory Control Using Fuzzy Dynamic Programming

Abstract

There are a variety of efficient approaches to solve crisp inventory models in operations research. In this article a model that uses Bellman and Zadeh's approach to fuzzy dynamic programming is used. The problem considered is the following: the management of a company wants to close down a certain plant within a definite time interval. Therefore production levels should decrease to zero as smoothly as possible and the stock level at the end of the planning period should be as low as possible. The demand is assumed to be deterministic.