Development of an EOQ model for multi source and destinations, deteriorating products under fuzzy environment

Abstract

Business in the present highly competitive scenario emphasises the need to satisfy customers. Generally, uncertainty in demand is observed from customer side when products are deteriorating in nature. This uncertain demand cannot be predicted precisely, which causes fuzziness in related constraints and cost functions. Synchronizing inventory, procurement, and transportation of deteriorating natured products with fuzzy demand, and fuzzy holding cost at source and destination becomes essential in supply chain management (SCM). The current study demonstrates a fuzzy optimizationmodel with an objective tominimize the cost of holding, procurement, and transportation of multi products from multi sources to multi destinations (demand point) with discount policies on ordered and weighted transportation quantity. A case study is illustrated to validate the model.