A fuzzy economic order quantity model with credibility induced demand and shortages

Abstract

: The purpose of this study is to explore the research for a decision-maker to minimise the total cost of the newly launched products of good quality and to control the inventory introduced in the market. This research provides the modification way of the stock to regulate the inventory management of the retailer. Due to the uncertainty in the marketplace, various parameters like a shortage, ordering, and deteriorating cost not fixed in nature. So, it is difficult to obtain the proper estimate of such costs. In this paper, we develop a traditional economic order quantity model with a fuzzy approach and provide a suitable structure to handle such uncertain parameters, improving the exactness and computational efficiency of the inventory system. The optimal solution of the problem is done with the method of graded mean integration. The model illustration is demonstrated through the appropriate numerical and sensitivity analysis.