An analytical solution to a fuzzy economic order quantity problem
This paper contributes to the set of models capturing the economic order quantity with backorders. In real life situations, both the demand and the lead times are uncertain. These uncertainties are handled with fuzzy numbers and the analytical solution to the optimization problem, where both the demand and the lead times are formulated as a triangular fuzzy numbers, is obtained. Finally the solution from the new approach is compared to earlier work and through an example, it is shown that the uncertainties result in increased order quantities. (C) 2008 Elsevier Inc. All rights reserved.
economic order quantity fuzzy numbers inventory management