Optimization of fuzzy inventory model under fuzzy demand and fuzzy lead time using Exponential fuzzy number

To deal with imprecision parameters in inventory problems, fuzzy set theory has been applied to real-world decision making problems. In fuzzy set theory, a corresponding membership function is usually employed to quantify such imprecision parameters. In the present paper a realistic inventory model with demand per day items and the lead time for the order of the items are imprecise and non-linear in nature and are characterized by exponential fuzzy numbers. The optimal order quantity is computed with the help of graded mean integration representation method which has proved to be simpler and appropriate for the above problem. Again the k-preference for calculating the mean of fuzzy numbers is user dependent. [Under these conditions, the optimal values of the reorder point and safety stock are calculated. The fuzzy inventory model is thus optimized under fuzzy demand and fuzzy lead lime. The sensitivity analysis of the parameters is done for the variation in the levels of service.