Developing a multi-products newsboy problem with a hybrid method of fuzzy simulation and simulated annealing

In this paper, we develop the multi-products multi-constraints newsboy problem with fuzzy demands considering the total discount situation. Since the demands of products are often fuzzy in the real world, the profit of the newsboy is fuzzy too. A new model is presented for multi-products multi-constraints newsboy problem in fuzzy environment (FM-PM-CNP). The objective function of proposed model is to maximize the expected profit of newsboy. We consider the constraints such as service rate, restriction on quantity order, and restriction on warehouse space and budget. We also consider batch size for products order. Furthermore, a hybrid intelligent algorithm based on simulated annealing and fuzzy simulation is presented for the developed model. Finally an illustrative example is presented to show the performance of the developed model and algorithm.