IDEAS home Printed from https://ideas.repec.org/a/ids/ijpman/v8y2015i5p546-569.html
   My bibliography  Save this article

Continuous review inventory model with reducing lost sales rate under fuzzy stochastic demand and variable lead time

Author

Listed:
  • Hardik N. Soni
  • Kamlesh A. Patel

Abstract

The present study considers a continuous review inventory system for the inventory model involving fuzzy random demand, variable lead-time with lost-sales (backorder) caused by stock-out. Two forms of capital investment cost function viz. logarithmic and power are employed to reduce the lost-sales rate. We first formulate the basic model mathematically by assuming expected demand as triangle fuzzy number along with the capital investment to reduce lost-sales rate. As a result, the demand during lead-time is fuzzy random variable which is the linear sum of the weekly demand during the lead-time period. Consequently, the total weekly cost of this model is also fuzzy random in nature. Hence the expected total weekly cost is fuzzy valued function. To defuzzify the expected total weekly cost, we use the signed distance method. A computer program using the software MATLAB is developed to obtain the optimal solution and provide numerical examples to illustrate the models. Moreover, sensitivity analysis is carried out with respect to the key parameters.

Suggested Citation

  • Hardik N. Soni & Kamlesh A. Patel, 2015. "Continuous review inventory model with reducing lost sales rate under fuzzy stochastic demand and variable lead time," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 8(5), pages 546-569.
    • Handle: RePEc:ids:ijpman:v:8:y:2015:i:5:p:546-569
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=70899
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijpman:v:8:y:2015:i:5:p:546-569. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=255 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.