An analytical approach for EOQ determination using trapezoidal fuzzy function

Sudhir Kumar Sharma, Srikrishna Govindaluri

Research output: Contribution to journalArticle

Abstract

Inventory management involves ordering right quantities of items for matching demand and supply. In inventory management, economic order quantity (EOQ) problem deals with determining the quantity to be ordered for minimising the sum of ordering and holding costs. This problem has been discussed by a number of researchers under the assumptions of deterministic and uncertain environments. Many studies have also employed fuzzy sets to characterise the imprecision and uncertainty of supply chains in EOQ models. This paper proposes a fuzzy EOQ model where the decision variables, batch order quantity and maximum inventory, are modelled using trapezoidal numbers. The signed distance method is used for defuzzification. The results show that the trapezoidal fuzzy model allows incorporating uncertainty using the proposed fuzzy economic order quantity model with only a slight increase in the batch order quantities and total cost per unit compared to the crisp economic order quantity model, which assumes deterministic conditions.

Original languageEnglish
Pages (from-to)356-369
Number of pages14
JournalInternational Journal of Procurement Management
Volume11
Issue number3
DOIs
Publication statusPublished - Jan 1 2018

Keywords

  • Economic order quantity
  • EOQ
  • Inventory management
  • Signed distance method
  • Total cost per unit
  • Trapezoidal fuzzy number

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

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