Integrated inventory models with fuzzy annual demand and fuzzy production rate in a supply chain

The successful implementation of Just-in-time (JIT) production in today's supply chain environment requires a new spirit of cooperation between the buyer and the vendor. An integrated inventory model with such a consideration is based on the total cost optimization under a common stock policy a...

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Bibliographic Details
Published in:International journal of production research 2008-02, Vol.46 (3), p.753-770
Main Authors: Pan, J.C.-H., Yang, M.-F.
Format: Article
Language:English
Subjects:
Applied sciences
Demand
Exact sciences and technology
Fuzzy numbers
Fuzzy sets
Integrated inventory
Inventory control, production control. Distribution
JIT
Just in time
Logistics
Operational research and scientific management
Operational research. Management science
Studies
Supply chain management
Supply chains
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Summary:The successful implementation of Just-in-time (JIT) production in today's supply chain environment requires a new spirit of cooperation between the buyer and the vendor. An integrated inventory model with such a consideration is based on the total cost optimization under a common stock policy and business formula. However, the supposition of known annual demand in most related literature may not be realistic. This paper proposes the inclusion of fuzzy annual demand and/or the production rate, and then employs the signed distance, a ranking method for fuzzy numbers, to find the estimate of the common total cost in the fuzzy sense, and subsequently derives the corresponding optimal buyer's quantity and the integer number of lots in which the items are delivered from the vendor to the purchaser. Numerical examples are provided to illustrate the results of proposed models.
ISSN:0020-7543
1366-588X
DOI:10.1080/00207540600898072